| UNITED STATES                                                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION                                                                                                                      |
| Washington, D.C. 20549                                                                                                                                  |
| FORM 10-K                                                                                                                                               |
| (Mark One)                                                                                                                                              |
| [X]          Annual report under Section 13 or 15(d) of the Securities Exchange Act of 1934                |
|                                                                                                                                                    |
| For the fiscal year ended June 30, 2011                                                                                                                 |
| OR                                                                                                                                                      |
| [  ]          Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|                                                                                                                                                    |
| Commission File Number 001-35019                                                                                                                        |
|                                                                                                                                                    |
| HOME FEDERAL BANCORP, INC. OF LOUISIANA                                                                                                                 |
| (Exact name of registrant as specified in its charter)                                                                                                  |
| Louisiana                       |   | 02-0815346             |
|---------------------------------|--------|------------------------|
| (State or Other Jurisdiction of |   | (I.R.S. Employer       |
| Incorporation or Organization)  |   | Identification Number) |
| 624 Market Street, Shreveport, Louisiana |   | 71101      |
|------------------------------------------|--------|------------|
| (Address of Principal Executive Offices) |   | (Zip Code) |
| Registrant's telephone number, including area code: | (318) 222-1145 |
|-----------------------------------------------------|----------------|
| Securities registered pursuant to Section 12(b) of the Act: |   |   |   |
|-------------------------------------------------------------|--------|--------|--------|
| Title of each class                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Name of each exchange on which registered |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|
|                            Common Stock (par value $.01 per share)                                                                             Nasdaq Stock Market, LLC |
| Securities registered pursuant to Section 12(g) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |        None                                                                                                                                                                                   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes [  ]   No [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.Yes [  ]   No [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 5(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                                     Yes  [X]   No [  ]             |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                   Yes  [  ]    No [  ]                                                                                                                                                                                                                                                                                                                                                                                   |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.                                                                                    [X]                                                      |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Large accelerated filer               [  ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Accelerated filer                      [   ]                          |
| Non-accelerated filer                 [  ] (Do not check if a smaller reporting company)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Smaller reporting company    [X]                                                                                                                                                                                                                                                                       |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes [  ]   No [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| The aggregate value of the 2,655,075 shares of Common Stock of the Registrant issued and outstanding on December 31, 2010, which excludes an aggregate of 390,754 shares held by all directors and executives officers of the Registrant, the Registrant's Employee Stock Ownership Plan ("ESOP"), the Recognition and Retention Plan (“RRP”) and Employees' Savings and Profit Sharing Plan ("401(k) Plan") as a group, was approximately $30.5 million.  This figure is based on the closing sales price of $11.50 per share of the Registrant's Common Stock on December 31, 2010, the last business day of the Registrant’s second fiscal quarter.  Although directors and executive officers, the ESOP, RRP and 401(k) Plan were assumed to be "affiliates" of the Registrant for purposes of this calculation, the classification is not to be interpreted as an admission of such status. |
| Number of shares of Common Stock outstanding as of September 26, 2011:  3,051,881                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| DOCUMENTS INCORPORATED BY REFERENCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Set forth below are the documents incorporated by reference and the Part of the Form 10-K into which the document is incorporated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (1)  Portions of the Annual Report to Shareholders are incorporated into Part II, Items 5 through 8 and Part IV, Item 15 of this Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (2)  Portions of the Definitive Proxy Statement for the 2011 Annual Meeting of Shareholders are incorporated into Part III, Items 10 through 14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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| PART I.   |
|-----------|
|      |   |   |
| Item 1.   | Business                                                                                                            | 1 |
|      |   |   |
| Item 1A.  | Risk Factors                                                                                                            | 26 |
|      |   |   |
| Item 1B.  | Unresolved Staff Comments                                                                                                            | 26 |
|      |   |   |
| Item 2.   | Properties                                                                                                            | 26 |
|      |   |   |
| Item 3.   | Legal Proceedings                                                                                                            | 26 |
|      |   |   |
| Item 4.   | Submission of Matters to a Vote of Security Holders                                                                                                            | 26 |
|      |
| PART II.  |
|      |   |   |
| Item 5.   | Market for Registrant's Common Equity, Related Stockholder Matters and    Issuer Purchases of Equity Securities                                                                                                            | 27 |
|      |   |   |
| Item 6.   | Selected Financial Data                                                                                                            | 28 |
|      |   |   |
| Item 7.   | Management's Discussion and Analysis of Financial Condition and    Results of Operations                                                                                                            | 29 |
|      |   |   |
| Item 7A.  | Quantitative and Qualitative Disclosure About Market Risk                            | 38 |
|      |   |   |
| Item 8.   | Financial Statements and Supplementary Data                                                                                                            | 39 |
|      |   |   |
| Item 9.   | Changes in and Disagreements with Accountants on Accounting and    Financial Disclosure                                                                                                            | 83 |
|      |   |   |
| Item 9A.  | Controls and Procedures                                                                                                            | 83 |
|      |   |   |
| Item 9B.  | Other Information                                                                                                            | 83 |
|      |
| PART III. |
|      |   |   |
| Item 10.  | Directors, Executive Officers and Corporate Governance                                                                                                            | 84 |
|      |   |   |
| Item 11.  | Executive Compensation                                                                                                            | 84 |
|      |   |   |
| Item 12.  | Security Ownership of Certain Beneficial Owners and Management and    Related Stockholder Matters                                                                                                            | 84 |
|      |   |   |
| Item 13.  | Certain Relationships and Related Transactions and Director Independence | 85 |
|      |   |   |
| Item 14.  | Principal Accountant Fees and Services                                                                                                            | 85 |
|      |   |   |
| PART IV.  |   |   |
|      |   |   |
| Item 15.  | Exhibits and Financial Statement Schedules                                                                                                            | 85 |

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----

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|                                                                                                                           |                                                                                      | June 30,                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|----------------------------------------------|--------|
|                                                                                                                           |                                                                                      | 2011                                         |   |   |   |   | 2010 |   |
|                                                                                                                           |                                                                                      |                                         |   |   | Percent of |   |   |   |   |   |   |   |   | Percent of |   |
|                                                                                                                           |                                                                                      | Amount                                       |   |   | Total Loans |   |   |   |   | Amount |   |   |   | Total Loans |   |
|                                                                                                                           |             (Dollars in thousands) |                                         |
| Real estate loans:                                                                                                             |                                                                                      |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      One- to four-family residential(1)                                                               | $                                                                                         | 45,567                                       |   |   | 36.02 | % |   |   | $ | 36,257 |   |   |   | 38.65 | % |
|      Commercial-real estate secured:                                                                  |                                                                                      |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Owner occupied                                                     |                                                                                      | 32,763                                       |   |   | 25.90 |   |   |   |   | 14,550 |   |   |   | 15.51 |   |
|           Non-owner occupied                                                 |                                                                                      |        -- |   |   | -- |   |   |   |   |     872 |   |   |   | 0.93 |   |
|                Total commercial-real estate secured |                                                                                      |  32,763                                 |   |   | 25.90 |   |   |   |   | 15,422 |   |   |   | 16.44 |   |
|      Multi-family residential                                                                         |                                                                                      | 8,360                                        |   |   | 6.61 |   |   |   |   | 9,079 |   |   |   | 9.68 |   |
|      Land                                                                                             |                                                                                      | 11,254                                       |   |   | 8.90 |   |   |   |   | 8,442 |   |   |   | 9.00 |   |
|      Construction                                                                                     |                                                                                      | 10,325                                       |   |   | 8.16 |   |   |   |   | 7,793 |   |   |   | 8.31 |   |
|      Home equity loans and second mortgage loans                                                      |                                                                                      | 1,519                                        |   |   | 1.20 |   |   |   |   | 2,963 |   |   |   | 3.16 |   |
|      Equity lines of credit                                                                           |                                                                                      |    5,974                      |   |   |     4.73 |   |   |   |   |   4,069 |   |   |   |   4.33 |   |
|           Total real estate loans                                            |                                                                                      |  115,762                                |   |   |   91.52 |   |   |   |   | 84,025 |   |   |   | 89.57 |   |
| Commercial business                                                                                                            |                                                                                      | 10,237                                       |   |   | 8.09 |   |   |   |   | 9,454 |   |   |   | 10.08 |   |
| Consumer non-real estate loans:                                                                                                |                                                                                      |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Savings accounts                                                                                 |                                                                                      | 328                                          |   |   | 0.26 |   |   |   |   | 285 |   |   |   | 0.30 |   |
|      Automobile and other consumer loans                                                              |                                                                                      |     163                  |   |   |     0.13 |   |   |   |   |         48 |   |   |   |    0.05 |   |
|           Total non-real estate loans                                        |                                                                                      |     491                  |   |   |      0.39 |   |   |   |   |       333 |   |   |   |    0.35 |   |
|                Total loans                          |                                                                                      |  126,490                                |   |   |   100.00 | % |   |   |   | 93,812 |   |   |   | 100.00 | % |
| Less:                                                                                                                          |                                                                                      |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Allowance for loan losses                                                                        |                                                                                      | (842                                         | )      |   |   |   |   |   |   | (489 | ) |   |   |   |   |
|      Deferred loan fees                                                                               |                                                                                      | (277                                         | )      |   |   |   |   |   |   | (267 | ) |   |   |   |   |
|           Net loans receivable(1)                                            | $                                                                                         |  125,371                                |   |   |   |   |   |   | $ | 93,056 |   |   |   |   |   |
|                                                                                                                           |                                                                                      |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   |  _________________ |
|--------|-------------------------|

| (1) | Does not include loans held-for-sale amounting to $6.7 million and $13.4 million at June 30, 2011 and June 30, 2010, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2011                                                                                   |   |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                   |   |
| Loan originations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                   |   |   |   |   |   |
|      One- to four-family residential                                                                                                                       | $      |               122,981 |   |   | $ | 113,753 |   |
|      Commercial — real estate secured (owner occupied and non-owner occupied)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 20,575                                                                                 |   |   |   | 8,645 |   |
|      Multi-family residential                                                                                                                                   |   | 3,964                                                                                  |   |   |   | 7,780 |   |
|      Commercial business                                                                                                                                        |   | 14,034                                                                                 |   |   |   | 12,877 |   |
|      Land                                                                                                                                                       |   | 6,400                                                                                  |   |   |   | 7,561 |   |
|      Construction                                                                                                                                               |   | 15,367                                                                                 |   |   |   | 11,569 |   |
|      Home equity loans and lines of credit and other consumer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     10,688                                                         |   |   |   |        6,488 |   |
|           Total loan originations                                                                                                      |   | 194,009                                                                                |   |   |   | 168,673 |   |
| Loans purchased                                                                                                                                                                     |   |              --       |   |   |   |              -- |   |
| Total loan originations and loans purchased                                                                                                                                         |   | 194,009                                                                                |   |   |   | 168,673 |   |
| Loans sold                                                                                                                                                                          |   | (116,503                                                                               | )      |   |   | (71,554 | ) |
| Loan principal repayments                                                                                                                                                                |   |     (44,828                                                             | )      |   |   |    (50,844 | ) |
| Total loans sold and principal repayments                                                                                                                                                |   | (161,331                                                                               | )      |   |   | (122,398 | ) |
| Increase (decrease) due to other items, net(1)                                                                                                                                      |   |         (363                                   | )      |   |   |         (167 | ) |
| Net increase in loan portfolio                                                                                                                                                      | $      |            32,315               |   |   | $ |     46,108 |   |

----

|                                                                                                                                                                                                                          |   |           |   |   |               |   |         |        |   |   |       |   |   |   |   |   |         |   |   | Home         |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------------------|--------|--------------|-------------|--------|--------|------------|--------|--------|--------|--------|--------|--------------|--------|--------|--------------|--------|--------|
|                                                                                                                                                                                                                          |   |           |   |   |               |   |         |        |   |   |       |   |   |   |   |   |         |   |   | Equity Loans |   |   |
|                                                                                                                                                                                                                          |   |           |   |   |               |   |         |        |   |   |       |   |   |   |   |   |         |   |   | and Lines    |   |   |
|                                                                                                                                                                                                                          |   | One- to        |   |   | Commercial — |   |         | Multi-      |   |   |       |   |   |   |   |   |         |   |   | of Credit    |   |   |
|                                                                                                                                                                                                                          |   | Four-Family    |   |   | Real Estate        |   |         | Family      |   |   | Commercial |   |   |   |   |   |         |   |   | and Other    |   |   |
|                                                                                                                                                                                                                          |   | Residential    |   |   | Secured            |   |         | Residential |   |   | Business   |   |   | Land   |   |   | Construction |   |   | Consumer     |   | Total  |
|                                                                                                                                                                                                                          |   | (In thousands) |
| Amounts due after   June 30, 2011 in:                                                                                                                                                                |   |           |   |   |               |   |         |        |   |   |       |   |   |   |   |   |         |   |   |         |   |   |   |   |   |   |   |   |   |   |
| One year or less                                                                                                                                                                                                    |   | $              | 2,296  |   |               | $      | 808          |        |   | $      | 97         |   |   | $      | 4,946  |   |         | $      | 8,681  |         |   | $      | 6,892 |   |   | $ | 1,791 |   | $ | 25,511 |
| After one year through  two years                                                                                                                                                                         |   |           | 2,655  |   |               |   | 414          |        |   |   | --         |   |   |   | 1,661  |   |         |   | 2,023  |         |   |   | 3,433 |   |   |   | 335 |   |   | 10,521 |
| After two years through  three years                                                                                                                                                                           |   |           | 6,161  |   |               |   | 9,587        |        |   |   | 594        |   |   |   | 1,394  |   |         |   | 413    |         |   |   | -- |   |   |   | 75 |   |   | 18,224 |
| After three years through  five years                                                                                                                                                                          |   |           | 12,433 |   |               |   |  20,876 |        |   |   | 2,127      |   |   |   | 2,189  |   |         |   | 137    |         |   |   | -- |   |   |   | 5,457 |   |   | 43,219 |
| After five years through  ten years                                                                                                                                                                       |   |           | 2,542  |   |               |   |  693    |        |   |   | --         |   |   |   | 47     |   |         |   | --     |         |   |   | -- |   |   |   | 171 |   |   | 3,453 |
| After ten years through  fifteen years                                                                                                                                                                              |   |           | 3,565  |   |               |   |  --     |        |   |   | 2,179      |   |   |   | --     |   |         |   | --     |         |   |   | -- |   |   |   | 3 |   |   | 5,747 |
| After fifteen years                                                                                                                                                                                                 |   |           | 15,915 |   |               |   | 385          |        |   |   | 3,363      |   |   |   | --     |   |         |   | --     |         |   |   | -- |   |   |   | 152 |   |   | 19,815 |
|                                                                                                                                                                                                                          |   |           |   |   |               |   |         |        |   |   |       |   |   |   |   |   |         |   |   |         |   |   |   |   |   |   |   |   |   |   |
|     Total                                 |   | $              | 45,567 |   |               | $      | 32,763       |        |   | $      | 8,360      |   |   | $      | 10,237 |   |         | $      | 11,254 |         |   | $      | 10,325 |   |   | $ | 7,984 |   | $ | 126,490 |
|                                                                                                                                                                                                                          |   |           |   |   |               |   |         |        |   |   |       |   |   |   |   |   |         |   |   |         |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        |   | Floating or |            |   |   |              |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|-------------|-----------------|--------|--------|-------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Fixed-Rate  |   |        | Adjustable-Rate |   |   |  Total  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        |   |
| One- to four-family residential                                                                                           | $      | 35,345      |   | $           | 10,222          |   | $      | 45,567            |   |
| Commercial — real estate secured                                                                                    |   | 32,763      |   |        | --              |   |   | 32,763            |   |
| Multi-family residential                                                                                                  |   | 8,360       |   |        | --              |   |   | 8,360             |   |
| Commercial business                                                                                                       |   | 10,237      |   |        | --              |   |   | 10,237            |   |
| Land                                                                                                                      |   | 11,254      |   |        | --              |   |   | 11,254            |   |
| Construction                                                                                                              |   | 10,325      |   |        | --              |   |   | 10,325            |   |
| Home equity loans and lines of credit and other consumer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |  7,984 |   |        | --              |   |   | 7,984             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        |   |        |            |   |   |              |   |
|      Total                                                                                       | $      | 116,268     |   | $           | 10,222          |   | $      | 126,490           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        |   |        |            |   |   |              |   |

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|                                                                                                                                                                                                                                                                                                                                                          | June 30, 2011     |   |   | June 30, 2010 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|--------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                          | 30-89                  |   |   | 90 or More Days    |   |   | 30-89 |   |   | 90 or More Days |   |
|                                                                                                                                                                                                                                                                                                                                                          | Days Overdue           |   |   | Overdue            |   |   | Days Overdue |   |   | Overdue |   |
|                                                                                                                                                                                                                                                                                                                                                          | Number                 |   |   | Principal          |   |   | Number |   |   | Principal |   |   | Number |   |   | Principal |   |   | Number |   |   | Principal |   |
|                                                                                                                                                                                                                                                                                                                                                          | of Loans               |   |   | Balance            |   |   | of Loans |   |   | Balance |   |   | of Loans |   |   | Balance |   |   | of Loans |   |   | Balance |   |
|                                                                                                                                                                                                                                                                                                                                                          | (Dollars in thousands) |   |
| One- to four-family residential                                                                                                                                                                                                                                                                                                                               |                   | 24     |   |               | $      | 2,467 |   |   |   | 2 |   |   | $ | 114 |   |   |   | 4 |   |   | $ | 265 |   |   |   | 1 |   |   | $ |  15 |   |
| Commercial — real estate secured                                                                                                                                                                                                                                                                                                                   |                   | --     |   |               |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Multi-family residential                                                                                                                                                                                                                                                                                                                                 |                   | --     |   |               |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Commercial business                                                                                                                                                                                                                                                                                                                            |                   | --     |   |               |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Land                                                                                                               |                   | --     |   |               |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
| Construction                                                                                                       |                   | --     |   |               |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 1 |   |   |   | 345 |   |
| Home equity loans and lines of credit and  other consumer                                                |                   | --     |   |               |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                          |                   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total delinquent loans                                                                                                                                                                                                                                                                                                |                   | 24     |   |               | $      | 2,467 |   |   |   | 2 |   |   | $ | 114 |   |   |   | 4 |   |   | $ | 265 |   |   |   | 2 |   |   | $ | 360 |   |
|                                                                                                                                                                                                                                                                                                                                                          |                   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Delinquent loans to total net loans                                                                                                                                                                                                                                                                                                                           |                   |   |   |               |   | 1.97 | % |   |   |   |   |   |   | 0.09 | % |   |   |   |   |   |   | 0.28 | % |   |   |   |   |   |   | 0.39 | % |
| Delinquent loans to total loans                                                                                                                                                                                                                                                                                                                               |                   |   |   |               |   | 1.95 | % |   |   |   |   |   |   | 0.09 | % |   |   |   |   |   |   | 0.28 | % |   |   |   |   |   |   | 0.38 | % |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | June 30,          |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2011                   |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (Dollars in thousands) |   |
| Non-accruing loans:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   |   |   |   |   |   |   |
|      One- to four-family residential                                                                                                                                                                   |   | $                      | 15     |   |   | $ | 15 |   |
|      Commercial — real estate secured                                                                                                                                                       |   |                   | --     |   |   |   | -- |   |
|      Multi-family residential                                                                                                                                                                          |   |                   | --     |   |   |   | -- |   |
|      Commercial business                                                                                                                                                                               |   |                   | --     |   |   |   | -- |   |
|      Land                                                                                                                                                                                              |   |                   | --     |   |   |   | -- |   |
|      Construction                                                                                                                                                                                      |   |                   | --     |   |   |   | 345 |   |
|      Home equity loans and lines of credit and other consumer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                   | --     |   |   |   | -- |   |
|           Total non-accruing loans                                                                                                                                            |   |                   | 15     |   |   |   | 360 |   |
| Accruing loans 90 days or more past due                                                                                                                                                                                    |   |                   | 99     |   |   |   | -- |   |
|                Total non-performing loans(1)                                                                                                         |   |                   | 114    |   |   |   | 360 |   |
|           Real estate owned, net                                                                                                                                              |   |                   | --     |   |   |   | -- |   |
|                Total non-performing assets                                                                                                           |   | $                      | 114    |   |   | $ | 360 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                   |   |   |   |   |   |   |
| Total non-performing loans as a percent of loans, net                                                                                                                                                                           |   |                   | 0.09   | % |   |   | 0.39 | % |
| Total non-performing assets as a percent of total assets                                                                                                                                                                        |   |                   | 0.05   | % |   |   | 0.19 | % |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | At or for the Year Ended |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | June 30,            |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2011                     |    |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (Dollars in thousands)   |    |
| Total loans outstanding at end of period                                                                                                             |   | $                        | 126,490 |   |   | $ | 93,812 |   |
| Average loans outstanding                                                                                                                            |   |                     | 115,505 |   |   |   | 77,879 |   |
| Allowance for loan losses, beginning of period                                                                                                       |   |                     | 489     |   |   |   | 466 |   |
| Provision for loan losses                                                                                                                            |   |                     | 353     |   |   |   | 36 |   |
| Charge-offs                                                                                                                                          |   |                     | --      |   |   |   | (13 | ) |
| Allowance for loan losses, end of period                                                                                                             |   | $                        | 842     |   |   | $ | 489 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                     |    |   |   |   |   |   |
| Allowance for loan losses as a percent of non-performing loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                     | 738.60  | % |   |   | 135.83 | % |
| Allowance for loan losses as a percent of loans outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                     | 0.67    | % |   |   | 0.52 | % |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | June 30,          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2011                   |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   |   |   | Loan |   |   |   |   |   | Loan |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   |   |   | Category |   |   |   |   |   | Category |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Amount of              |   |   | as a % of |   |   | Amount of |   |   | as a % of |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Allowance              |   |   | Total Loans |   |   | Allowance |   |   | Total Loans |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (Dollars in thousands) |   |
| One- to four-family residential                                                                                   |   | $                      | 110    |   |   |   | 36.02 | % |   | $ | 30 |   |   |   | 38.65 | % |
| Commercial — real estate secured                                                                            |   |                   | 125    |   |   |   | 25.90 |   |   |   | 95 |   |   |   | 16.44 |   |
| Multi-family residential                                                                                          |   |                   | 140    |   |   |   | 6.61 |   |   |   | 70 |   |   |   | 9.68 |   |
| Commercial business                                                                                               |   |                   | 175    |   |   |   | 8.09 |   |   |   | 140 |   |   |   | 10.08 |   |
| Land                                                                                                              |   |                   | 150    |   |   |   | 8.90 |   |   |   | 75 |   |   |   | 9.00 |   |
| Construction                                                                                                      |   |                   | 130    |   |   |   | 8.16 |   |   |   | 74 |   |   |   | 8.31 |   |
| Home equity loans and lines of credit and other consumer                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   | 12     |   |   |   | 6.32 |   |   |   | 5 |   |   |   | 7.85 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total                                                                               |   | $                      | 842    |   |   |   | 100.00 | % |   | $ | 489 |   |   |   | 100.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | June 30,       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2011                |   |   | 2010 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Amortized           |   |   | Fair |   |   | Amortized |   |   | Fair |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Cost                |   |   | Value |   |   | Cost |   |   | Value |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (In thousands)      |
| Securities Held-to-Maturity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      FNBB stock                                                                                                                                        |   | $                   | 250 |   |   | $ | 250 |   |   | $ | -- |   |   | $ | -- |
|      FHLB stock                                                                                                                                        |   |                | 1,320 |   |   |   | 1,320 |   |   |   | 1,840 |   |   |   | 1,840 |
|      Mortgage-backed securities                                                                                                                        |   |                |     4,155 |   |   |   |     4,068 |   |   |   |        298 |   |   |   |        323 |
|           Total Securities Held-to-Maturity                                                                                   |   |                |     5,725 |   |   |   |     5,638 |   |   |   |     2,138 |   |   |   |     2,163 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Available-for-Sale:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Government agency securities                                                                                                                      |   |                | 36,774 |   |   |   | 36,981 |   |   |   | --  |   |   |   | --  |
|      ARM Fund                                                                                                                                          |   |                | 1,291 |   |   |   | 1,308 |   |   |   | 1,538 |   |   |   | 1,559 |
|      Mortgage-backed securities                                                                                                                        |   |                |   34,814 |   |   |   |   36,750 |   |   |   |   58,974 |   |   |   |   62,129 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total Securities Available-for-Sale                                                                                 |   |                |   72,879 |   |   |   |   75,039 |   |   |   |   60,512 |   |   |   |   63,688 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Investment Securities                                                                                                                                                                                                                           |   |    $ |   78,604 |   |   |   $ |   80,677 |   |   |     $ |   62,650 |   |   | $ |   65,851 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                       |   | Amounts at June 30, 2011 which Mature in |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                                                                       |   |                                          |   |   |   |   |   | Over One |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                       |   |                                          |   |   | Weighted |   |   | Year |   |   | Weighted |   |   | Over Five |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                                                                                                                                                                                                                                       |   | One Year                                      |   |   | Average |   |   | Through |   |   | Average |   |   | Through |   |   | Average |   |   | Over |   |   | Average |   |
|                                                                                                                                                                                                                                                                       |   | or Less                                       |   |   | Yield |   |   | Five Years |   |   | Yield |   |   | Ten Years |   |   | Yield |   |   | Ten Years |   |   | Yield |   |
|                                                                                                                                                                                                                                                                       |   | (Dollars in thousands)                        |   |
| Bonds and other debt securities:                                                                                                                                                                                                                                           |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Government agency securities                                                                                                                                                                                                                 |   | $                                             | --     |   |   |   | -- | % |   | $ | 36,981 |   |   |   | 0.81 | % |   | $ | -- |   |   |   | -- | % |   | $ | -- |   |   |   | -- | % |
|      Mortgage-backed securities                                                                                                                                                                                                                   |   |                                          | --     |   |   |   | -- |   |   |   | 23 |   |   |   | 7.03 |   |   |   | 750 |   |   |   | 3.56 |   |   |   | 40,045 |   |   |   | 4.94 |   |
| Equity securities(1):                                                                                                                                                                                                                                                      |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      ARM Fund                                       |   |                                          | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 1,308 |   |   |   | 2.31 |   |
|      FNBB stock                                                                                                                                                                                                                                   |   |                                          | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 250 |   |   |   | 1.26 |   |
|      FHLB stock                                                                                                                                                                                                                         |   |                                          | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 1,320 |   |   |   | 0.33 |   |
|                                                                                                                                                                                                                                                                       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total investment securities   and Bank stocks                                                                                                                                                                                                          |   | $                                             | --     |   |   |   | -- | % |   | $ | 37,004 |   |   |   | 0.81 | % |   | $ | 750 |   |   |   | 3.56 | % |   | $ | 42,923 |   |   |   | 4.70 | % |
|                                                                                                                                                                                                                                                                       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | June 30,  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2011           |   |     2010 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (In thousands) |
| Fixed rate:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |   |   |   |   |   |
|      GNMA                                                                                                                           |   | $              |      157 |   |   | $ |   205 |
|      FHLMC                                                                                                                          |   |           |   1,680 |   |   |   |   2,812 |
|      FNMA                                                                                                                           |   |           | 37,784 |   |   |   | 58,004 |
|           Total fixed rate                                                                                 |   |           | 39,621 |   |   |   | 61,021 |
| Adjustable rate:                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           |   |   |   |   |   |
|      GNMA                                                                                                                           |   |           |      115 |   |   |   |    128 |
|      FNMA                                                                                                                           |   |           |      732 |   |   |   |    881 |
|      FHLMC                                                                                                                          |   |           |      350 |   |   |   |      422 |
|           Total adjustable-rate                                                                            |   |           |        1,197 |   |   |   |   1,431 |
|           Total mortgage-backed securities                                                                 |   | $              | 40,818 |   |   | $ | 62,452 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                        |   | Amounts at June 30, 2011 which Mature in |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                          |   |   | Weighted |   |   | Over One |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   | One Year                                      |   |   | Average |   |   | through |   |   | Average |   |   | Over |   |   | Average |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   | or Less                                       |   |   | Yield |   |   | Five Years |   |   | Yield |   |   | Five Years |   |   | Yield |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   | (In thousands)                                |   |
| Fixed rate:                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      GNMA                                                                                                                |   | $                                             | --     |   |   |   | -- | % |   | $ | 8 |   |   |   | 10.20 | % |   | $ | 149 |   |   |   | 8.30 | % |
|      FHLMC                                                                                                               |   |                                          | --     |   |   |   | -- |   |   |   | 2 |   |   |   | 9.17 |   |   |   | 1,678 |   |   |   | 4.93 |   |
|      FNMA                                                                                                                |   |                                          | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 37,784 |   |   |   | 4.97 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total fixed-rate                                                                      |   |                                          | --     |   |   |   | -- |   |   |   | 10 |   |   |   | 10.03 |   |   |   | 39,611 |   |   |   | 4.98 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustable rate:                                                                                                                                                                                                                                                                                                                                                                                            |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      GNMA                                                                                                                |   |                                          | --     |   |   |   | -- |   |   |   | 10 |   |   |   | 4.47 |   |   |   | 105 |   |   |   | 2.53 | % |
|      FNMA                                                                                                                |   |                                          | --     |   |   |   | -- |   |   |   | 3 |   |   |   | 6.66 |   |   |   | 729 |   |   |   | 3.00 |   |
|      FHLMC                                                                                                               |   |                                          | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 350 |   |   |   | 3.05 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total adjustable-rate                                                                                                                                                                                                                                                                                             |   |                                          | --     |   |   |   | -- |   |   |   | 13 |   |   |   | 4.95 |   |   |   | 1,184 |   |   |   | 2.97 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                Total                                                   |   | $                                             | --     |   |   |   | -- | % |   | $ | 23 |   |   |   | 7.04 | % |   | $ | 40,795 |   |   |   | 4.93 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | At or For the            |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Year Ended June 30, |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2011                     |    |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (Dollars in thousands)   |    |
| Mortgage-backed securities at beginning of period                                                                                                       |   | $                        | 59,272  |   |   | $ | 89,945 |   |
| Purchases                                                                                                                                               |   |                     | 3,969   |   |   |   | -- |   |
| Repayments                                                                                                                                              |   |                     | (14,342 | ) |   |   | (14,555 | ) |
| Sales                                                                                                                                                   |   |                     | (10,103 | ) |   |   | (16,420 | ) |
| Amortizations of premiums and discounts, net                                                                                                            |   |                     | 173     |   |   |   | 302 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     |    |   |   |   |   |   |
| Mortgage-backed securities at end of period                                                                                                             |   | $                   | 38,969  |   |   | $  | 59,272 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     |    |   |   |   |   |   |
| Weighted average yield at end of period                                                                                                                 |   |                     | 4.93    | % |   |   | 4.95 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                     |    |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | June 30,          |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2011                   |    |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |    |   | Percent of |   |   |   |   |   | Percent of |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Amount                 |    |   | Total Deposits |   |   | Amount |   |   | Total Deposits |   |
| Certificate accounts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (Dollars in thousands) |    |
|      0.00% - 0.99%                                                                                                           |   | $                      | 4,762   |   |   |   | 3.10 | % |   | $ | 12 |   |   |   | 0.01 | % |
|      1.00% - 1.99%                                                                                                           |   |                   | 24,946  |   |   |   | 16.24 |   |   |   | 30,309 |   |   |   | 25.75 |   |
|      2.00% - 2.99%                                                                                                           |   |                   | 29,869  |   |   |   | 19.44 |   |   |   | 16,734 |   |   |   | 14.22 |   |
|      3.00% - 3.99%                                                                                                           |   |                   | 20,192  |   |   |   | 13.15 |   |   |   | 17,497 |   |   |   | 14.86 |   |
|      4.00% - 4.99%                                                                                                           |   |                   | 1,026   |   |   |   | 0.67 |   |   |   | 7,865 |   |   |   | 6.68 |   |
|      5.00% - 5.99%                                                                                                           |   |                   | 4,870   |   |   |   | 3.17 |   |   |   | 1,473 |   |   |   | 1.25 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total certificate accounts                                                                     |   |                   | 85,665  |   |   |   | 55.77 |   |   |   | 73,890 |   |   |   | 62.77 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transaction accounts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Passbook savings                                                                                                             |   |                   | 7,363   |   |   |   | 4.79 |   |   |   | 5,266 |   |   |   | 4.47 |   |
|      Non-interest bearing demand accounts                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                   | 14,827  |   |   |   | 9.65 |   |   |   | 9,890 |   |   |   | 8.40 |   |
|      NOW accounts                                                                                                                 |   |                   | 14,516  |   |   |   |  9.45 |   |   |   |  8,240 |   |   |   | 7.00 |   |
|      Money market                                                                                                                 |   |                   | 31,245  |   |   |   | 20.34 |   |   |   | 20,436 |   |   |   | 17.36 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total transaction accounts                                                                     |   |                   | 67,951  |   |   |   | 44.23 |   |   |   | 43,832 |   |   |   | 37.23 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total deposits                                                                                 |   | $                      | 153,616 |   |   |   | 100.00 | % |   | $ | 117,722 |   |   |   | 100.00 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Year Ended June 30, |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2011                     |    |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Average                  |    |   | Interest |   |   | Rate |   |   | Average |   |   | Interest |   |   | Rate |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Balance                  |    |   | Expense |   |   | Paid |   |   | Balance |   |   | Expense |   |   | Paid |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (Dollars in thousands)   |    |
| Passbook savings                                                                                         |   | $                        | 6,125   |   |   | $ | 25 |   |   |   | 0.41 | % |   | $ | 5,588 |   |   | $ | 23 |   |   |   | 0.41 | % |
| Non-interest bearing demand accounts                                                                                                                                                                                                                                                                                                                                                                                 |   |                     | 12,302  |   |   |   | -- |   |   |   | -- |   |   |   | 5,940 |   |   |   | -- |   |   |   | -- |   |
| NOW accounts                                                                                             |   |                     | 10,384  |   |   |   | 65 |   |   |   | 0.63 |   |   |   | 5,583 |   |   |   | 22 |   |   |   | 0.39 |   |
| Money market                                                                                             |   |                     | 27,542  |   |   |   | 260 |   |   |   | 0.94 |   |   |   | 14,377 |   |   |   | 183 |   |   |   | 1.27 |   |
| Certificates of deposit                                                                                  |   |                     | 78,971  |   |   |   | 1,929 |   |   |   | 2.44 |   |   |   | 67,981 |   |   |   | 2,010 |   |   |   | 2.96 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total deposits                                                             |   | $                        | 135,324 |   |   | $ | 2,279 |   |   |   | 1.68 | % |   | $ | 99,469 |   |   | $ | 2,238 |   |   |   | 2.25 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Year Ended June 30, |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2011                     |   |   | 2010 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (In thousands)           |
| Total deposits at beginning of period                                                                                                                              |   | $                        | 117,722 |   |   | $ | 86,146 |
| Net deposits (withdrawals)                                                                                                                                         |   |                     | 34,221 |   |   |   | 30,059 |
| Interest credited                                                                                                                                                  |   |                     | 1,673 |   |   |   | 1,517 |
|      Total increase in deposits                                                                                                           |   | $                        | 35,894 |   |   | $ | 31,576 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                     |   |   |   |   |   |

----

|                       |              |                                                                                                                                                                                                                                                                                                                                  | Balance at June 30, 2011                  |   |
|----------------------------|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|--------|
|                       |              |                                                                                                                                                                                                                                                                                                                                  | Maturing in the 12 Months Ending June 30, |   |
| Certificates of Deposit    |              | 2012                                                                                                                                                                                                                                                                                                                                  |                                      |   | 2013 |   |   | 2014 |   |   | Thereafter |   |   | Total |   |
|                       |              |                                                                                                                                                                                                                                                                                                                                  | (In thousands)                            |   |
|                       | 0.00% - 0.99 | %                                                       |                                      | $      | 4,735 |   |   | $ | 27 |   |   | $ | -- |   |   | $ | -- |   |   | $ | 4,762 |   |
|                       | 1.00% - 1.99 | %                                                       |                                      |   | 19,129 |   |   |   | 5,591 |   |   |   | 226 |   |   |   | -- |   |   |   | 24,946 |   |
|                       | 2.00% - 2.99 | %                                                       |                                      |   | 10,516 |   |   |   | 4,963 |   |   |   | 7,697 |   |   |   | 6,693 |   |   |   | 29,869 |   |
|                       | 3.00% - 3.99 | %                                                       |                                      |   | 1,384 |   |   |   | 3,667 |   |   |   | 2,039 |   |   |   | 13,102 |   |   |   | 20,192 |   |
|                       | 4.00% - 4.99 | %                                                       |                                      |   | 323 |   |   |   | 281 |   |   |   | 422 |   |   |   | -- |   |   |   | 1,026 |   |
|                       | 5.00% - 5.99 | %                                                       |                                      |   | 3,623 |   |   |   | 1,247 |   |   |   | -- |   |   |   | -- |   |   |   | 4,870 |   |
| Total certificate accounts |              | $                                                                                                                                                                                                                                                                                                                                     | 39,710                                    |   |   | $ | 15,776 |   |   | $ | 10,384 |   |   | $ | 19,795 |   |   | $ | 85,665 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                   |   |   | Weighted     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Amount                 |   |   | Average Rate |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (Dollars in thousands) |   |
| September 30, 2011                                                                                           |   | $                      | 4,687  |   |         |   | 1.75 | % |
| December 31, 2011                                                                                            |   |                   | 4,198  |   |         |   | 1.56 |   |
| March 31, 2012                                                                                               |   |                   | 2,872  |   |         |   | 1.78 |   |
| June 30, 2012                                                                                                |   |                   | 3,955  |   |         |   | 1.86 |   |
| After June 30, 2012                                                                                          |   |                   | 15,421 |   |         |   | 2.78 |   |
| Total certificates of deposit with balances in excess of $100,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                      | 31,133 |   |         |   | 2.25 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | At or For the Year     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Ended June 30,    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2011                   |   | 2010   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (Dollars in thousands) |
| FHLB advances:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                   |   |   |   |   |   |   |
|      Average balance outstanding                                                                                                                               |   | $                      | 26,630 |   |   | $      | 35,529 |   |
|      Maximum amount outstanding at any month-end during the period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                   | 29,326 |   |   |   | 42,542 |   |
|      Balance outstanding at end of period                                                                                                                      |   |                   | 26,891 |   |   |   | 31,507 |   |
|      Average interest rate during the period                                                                                                                   |   |                   | 3.41   | %      |   |   | 3.43   | %      |
|      Weighted average interest rate at end of period                                                                                                           |   |                   | 2.85   | %      |   |   | 3.47   | %      |

----

| Years Ending June 30,                     |   | Amount         |   |
|-------------------------------------------|--------|----------------|--------|
|                                      |   | (In thousands) |   |
| 2012                                      |   | $              | 16,422 |   |
| 2013                                      |   |           | 5,907  |   |
| 2014                                      |   |           | 1,915  |   |
| 2015                                      |   |           | 236    |   |
| 2016                                      |   |           | 247    |   |
| Thereafter                                |   |           | 2,164  |   |
|      Total  |   | $              | 26,891 |   |

----

| ·   | The Office of Thrift Supervision merged into the Office of the Comptroller of the Currency and the authority of the other remaining bank regulatory agencies were restructured. The federal thrift charter is preserved under the jurisdiction of the Office of the Comptroller of the Currency. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A new independent consumer financial protection bureau was established within the Federal Reserve Board, empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. Smaller financial institutions, like Home Federal Bank, are subject to the supervision and enforcement of their primary federal banking regulator with respect to the federal consumer financial protection laws. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tier 1 capital treatment for “hybrid” capital items like trust preferred securities was eliminated subject to various grandfathering and transition rules. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The prohibition on payment of interest on demand deposits was repealed, effective July 21, 2011. |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | State law is preempted only if it would have a discriminatory effect on a federal savings association or is preempted by any other federal law. The Office of the Comptroller of the Currency must make a preemption determination on a case-by-case basis with respect to a particular state law or other state law with substantively equivalent terms. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Deposit insurance is permanently increased to $250,000 and unlimited deposit insurance for noninterest-bearing transaction accounts extended through January 1, 2013. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Deposit insurance assessment base calculation equals the depository institution’s total assets minus the sum of its average tangible equity during the assessment period. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The minimum reserve ratio of the Deposit Insurance Fund increased to 1.35 percent of estimated annual insured deposits or assessment base; however, the Federal Deposit Insurance Corporation is directed to “offset the effect” of the increased reserve ratio for insured depository institutions with total consolidated assets of less than $10 billion. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Authority over savings and loan holding companies transferred to the Federal Reserve Board on July 21, 2011. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Leverage capital requirements and risk based capital requirements applicable to depository institutions and bank holding companies were extended to thrift holding companies. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Federal Deposit Insurance Act was amended to direct federal regulators to require depository institution holding companies to serve as a source of strength for their depository institution subsidiaries. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Securities and Exchange Commission is authorized to adopt rules requiring public companies to make their proxy materials available to shareholders for nomination of their own candidates for election to the board of directors. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Public companies will be required to provide their shareholders with a non-binding vote: (i) at least once every three years on the compensation paid to executive officers, and (ii) at least once every six years on whether they should have a “say on pay” vote every one, two or three years. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A separate, non-binding shareholder vote will be required regarding golden parachutes for named executive officers when a shareholder vote takes place on mergers, acquisitions, dispositions or other transactions that would trigger the parachute payments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Securities exchanges will be required to prohibit brokers from using their own discretion to vote shares not beneficially owned by them for certain “significant” matters, which include votes on the election of directors, executive compensation matters, and any other matter determined to be significant. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Stock exchanges, which do not include the OTC Bulletin Board, will be prohibited from listing the securities of any issuer that does not have a policy providing for (i) disclosure of its policy on incentive compensation payable on the basis of financial information reportable under the securities laws, and (ii) the recovery from current or former executive officers, following an accounting restatement triggered by material noncompliance with securities law reporting requirements, of any incentive compensation paid erroneously during the three-year period preceding the date on which the restatement was required that exceeds the amount that would have been paid on the basis of the restated financial information. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure in annual proxy materials will be required concerning the relationship between the executive compensation paid and the financial performance of the issuer. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Item 402 of Regulation S-K will be amended to require companies to disclose the ratio of the Chief Executive Officer’s annual total compensation to the median annual total compensation of all other employees. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Smaller reporting companies are exempt from complying with the internal control auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Total Risk-Based |   | Tier 1 Risk-Based |   | Tier 1 Leverage |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|-------------------|--------|-----------------|
| Capital Category                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Capital          |   | Capital           |   | Capital         |
| Well capitalized                                                                                  |   | 10% or more      |   | 6% or more        |   | 5% or more      |
| Adequately capitalized                                                                            |   | 8% or more       |   | 4% or more        |   | 4% or more      |
| Undercapitalized                                                                                  |   | Less than 8%     |   | Less than 4%      |   | Less than 4%    |
| Significantly undercapitalized                                                                    |   | Less than 6%     |   | Less than 3%      |   | Less than 3%    |

----

| ·   | Making any new investments or engaging in any new activity not allowed for both a national bank and a savings association; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | Establishing any new branch office unless allowable for a national bank; and |
|--------------------|------------------------------------------------------------------------------|

| ·   | Paying dividends unless allowable for a national bank. |
|--------------------|--------------------------------------------------------|

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   | Net Book Value |   | Amount of |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|----------------|--------|-----------|
| Description/Address                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Leased/Owned |   | of Property    |   | Deposits  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |         |   | (In thousands) |
| Building                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |         |   |           |   |      |   |   |   |   |   |   |
|      624 Market Street     Shreveport, LA                                                                                                     |   |         | Owned  |           |   | $         | 225 |   |   | $ | 51,971 |   |
| Building/ATM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |         |   |           |   |      |   |   |   |   |   |   |
|      6363 Youree Dr.     Shreveport, LA                                                                                                       |   |         | Owned  | (1)            |   |      | 308 |   |   |   | 63,164 |   |
| Building/ATM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |         |   |           |   |      |   |   |   |   |   |   |
|      9300 Mansfield Rd., Suite 101     Shreveport, LA                                                                                    |   |         | Leased |           |   |      | 51 |   |   |   | 29,716 |   |
| Building/ATM                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |         |   |           |   |      |   |   |   |   |   |   |
|      2555 Viking Drive     Bossier City, LA                                                                                                   |   |         | Owned  |           |   |      | 2,394 |   |   |   | 8,765 |   |
| Agency Office                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |         |   |           |   |      |   |   |   |   |   |   |
|      6425 Youree Drive, Suite 100     Shreveport, LA                                                                                     |   |         | Leased |           |   |      | 25 |   |   |   | — |   |
| Lot 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |         |   |           |   |      |   |   |   |   |   |   |
|      River Crest, Unit #1     Bossier Parish, LA                                                                                              |   |         | Owned  |           |   |      | 436 |   |   |   | — |   |

| (1) | The building is owned but the land is subject to an operating lease which was renewed on November 30, 2008 for a five-year period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                             |   | Stock Price per Share |   |   | Cash Dividends |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|----------------|--------|
| Quarter Ended                                                                                                                                                                                                                                                                                                                                    |   | High                  |   |   | Low            |   |   | per Share |   |
|      Fiscal 2011:                                                                                                                                                                                                                                                                                                       |   |                  |   |   |           |   |   |   |   |
|           June 30, 2011                                                 |   | $                     | 14.00  |   |           | $      | 12.75 |   |   | $ | 0.06 |   |
|           March 31, 2011                                                |   |                  | 13.30  |   |           |   | 11.76 |   |   |   | 0.06 |   |
|           December 31, 2010                                             |   |                  | 12.19  |   |           |   | 9.60 |   |   |   | 0.05 |   |
|           September 30, 2010                                            |   |                  | 10.99  |   |           |   | 8.45 |   |   |   | 0.05 |   |
|                                                                                                                                                                                                                                                                                                                                             |   |                  |   |   |           |   |   |   |   |   |   |   |
|      Fiscal 2010:                                                                                                                                                                                                                                                                                                       |   |                  |   |   |           |   |   |   |   |   |   |   |
|           June 30, 2010                                                 |   | $                     | 9.87   |   |           | $      | 8.78 |   |   | $ | 0.05 |   |
|           March 31, 2010                                                |   |                  | 9.38   |   |           |   | 8.23 |   |   |   | 0.05 |   |
|           December 31, 2009                                             |   |                  | 9.87   |   |           |   | 8.12 |   |   |   | 0.05 |   |
|           September 30, 2009                                            |   |                  | 8.78   |   |           |   | 6.92 |   |   |   | 0.05 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | At June 30, |           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |  2011  |           |   |  2010 |   |   |  2009 |   |   |  2008 |   |   |  2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        | (In thousands) |   |   |
| Selected Financial and Other Data:                                                                                                                                                                                                                                                                                                                                                                                                         |   |        |           |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                      |   | $           | 233,320        |   |   | $ | 185,145 |   |   | $ | 154,766 |   |   | $ | 137,715 |   |   | $ | 118,785 |   |
| Cash and cash equivalents                                                                                                                                                                                           |   |        | 9,599          |   |   |   | 8,837 |   |   |   | 10,007 |   |   |   | 7,363 |   |   |   | 3,972 |   |
| Securities available for sale                                                                                                                                                                                                                                                   |   |        | 75,039         |   |   |   | 63,688 |   |   |   | 92,647 |   |   |   | 96,324 |   |   |   | 83,752 |   |
| Securities held to maturity                                                                                                                                                                                                        |   |        | 5,725          |   |   |   | 2,138 |   |   |   | 2,184 |   |   |   | 1,688 |   |   |   | 1,408 |   |
| Loans held-for-sale                                                                                                                                                                                                                                                                                           |   |        | 6,653          |   |   |   | 13,403 |   |   |   | 1,277 |   |   |   | 852 |   |   |   | -- |   |
| Loans receivable, net                                                                                                                                                                                                                        |   |        | 125,371        |   |   |   | 93,056 |   |   |   | 46,948 |   |   |   | 28,263 |   |   |   | 26,689 |   |
| Deposits                                                                          |   |        | 153,616        |   |   |   | 117,722 |   |   |   | 86,146 |   |   |   | 78,359 |   |   |   | 77,710 |   |
| Federal Home Loan Bank advances                                                                                                                                                                                                                                  |   |        | 26,891         |   |   |   | 31,507 |   |   |   | 35,997 |   |   |   | 26,876 |   |   |   | 12,368 |   |
|      Total Stockholders’ equity                                                                                                                                                                                                                            |   |        | 51,183         |   |   |   | 33,365 |   |   |   | 31,310 |   |   |   | 27,874 |   |   |   | 27,812 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | As of or for the Year Ended June 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |  2011                           |   |   |  2010 |   |   |  2009 |   |   |  2008 |   |   |  2007 |   |
| Selected Operating Data:                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                 |   |   | (Dollars in thousands, except per share amounts) |   |   |   |   |
| Total interest income                                                                                                                                                                                                                                                                                                                       |   | $                                    | 10,297 |   |   | $ | 9,169 |   |   | $ | 7,596 |   |   | $ | 7,004 |   |   | $ | 6,590 |   |
| Total interest expense                                                                                                                                                                                                                                           |   |                                 | 3,186  |   |   |   | 3,458 |   |   |   | 3,838 |   |   |   | 3,968 |   |   |   | 3,448 |   |
| Net interest income                                                                                                                                                                                                                                                        |   |                                 | 7,111  |   |   |   | 5,711 |   |   |   | 3,758 |   |   |   | 3,036 |   |   |   | 3,142 |   |
| Provision for loan losses                                                                                                                                                                                                                                                                                                         |   |                                 | 353    |   |   |   | 36 |   |   |   | 240 |   |   |   | -- |   |   |   | 1 |   |
| Net interest income after provision for loan losses                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                 | 6,758  |   |   |   | 5,675 |   |   |   | 3,518 |   |   |   | 3,036 |   |   |   | 3,141 |   |
| Total non-interest income                                                                                                                                                                                                                                                       |   |                                 | 2,630  |   |   |   | 864 |   |   |   | 363 |   |   |   | 198 |   |   |   | 240 |   |
| Total non-interest expense(1)                                                                                                                                                                                                                                                                                      |   |                                 | 6,512  |   |   |   | 5,196 |   |   |   | 3,113 |   |   |   | 3,359 |   |   |   | 2,417 |   |
| Income (loss) before income tax expense (benefit)                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                 | 2,876  |   |   |   | 1,343 |   |   |   | 768 |   |   |   | (125) |   |   |   | 964 |   |
| Income tax expense (benefit)                                                                                                                                                                                                                                                                                                      |   |                                 | 938    |   |   |   | 673 |   |   |   | (253) |   |   |   | (43) |   |   |   | 327 |   |
| Net income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                    | 1,938  |   |   | $ | 670 |   |   | $ | 515 |   |   | $ | (82) |   |   | $ | 637 |   |
| Earnings (loss) per share of common stock:                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                                                                        |   | $                                    | 0.67   |   |   | $ | 0.21 |   |   | $ | 0.16 |   |   | $ | (0.03) |   |   | $ | 0.19 |   |
|      Diluted                                                                      |   | $                                    | 0.67   |   |   | $ | 0.21 |   |   | $ | 0.16 |   |   | $ | (0.03) |   |   | $ | 0.19 |   |

| Selected Operating Ratios(2):                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Average yield on interest-earning assets                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 5.22   | %      |   |   | 5.59   | %      |   |   | 5.21   | %      |   |   | 5.39   | % |   |   | 5.69 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average rate on interest-bearing liabilities                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 2.13   |   |   |   | 2.68   |   |   |   | 3.32   |   |   |   | 4.00   |   |   |   | 3.84 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest rate spread(3)                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 3.09   |   |   |   | 2.91   |   |   |   | 1.89   |   |   |   | 1.39   |   |   |   | 1.85 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin(3)                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 3.60   |   |   |   | 3.48   |   |   |   | 2.58   |   |   |   | 2.33   |   |   |   | 2.71 |   |
| Average interest-earning assets to average     interest-bearing liabilities                                                                                                                                                                                                                                              |   |   | 131.85 |   |   |   | 127.01 |   |   |   | 126.37 |   |   |   | 131.06 |   |   |   | 128.93 |   |
| Net interest income after provision for loan losses     to non-interest expense                                                                                                                                                                                                                                                                                                      |   |   | 103.78 |   |   |   | 109.22 |   |   |   | 113.01 |   |   |   | 90.38  |   |   |   | 129.95 |   |
| Total non-interest expense to average assets                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 3.13   |   |   |   | 3.08   |   |   |   | 2.09   |   |   |   | 2.52   |   |   |   | 2.00 |   |
| Efficiency ratio(4)                                                                     |   |   | 69.37  |   |   |   | 79.46  |   |   |   | 80.21  |   |   |   | 103.87 |   |   |   | 71.49 |   |
| Return on average assets                                                                                                                                                                                                                                               |   |   | 0.93   |   |   |   | 0.40   |   |   |   | 0.35   |   |   |   | (0.06  | ) |   |   | 0.53 |   |
| Return on average equity                                                                                                                                                                                                            |   |   | 4.47   |   |   |   | 2.09   |   |   |   | 1.70   |   |   |   | (0.25  | ) |   |   | 2.13 |   |
| Average equity to average assets                                                                                                                                                                                                                                                 |   |   | 20.86  |   |   |   | 18.98  |   |   |   | 20.35  |   |   |   | 24.83  |   |   |   | 24.82 |   |
| Dividend payout ratio                                                                                                                                                                                                                    |   |   | 26.37  |   |   |   | 43.73  |   |   |   | 57.86  |   |   |   | --     |   |   |   | 52.90 |   |

----

|                                                                                                |   |  As of or for the Year Ended June 30, |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                                |   |  2011                                 |   |   |  2010 |   |   |  2009 |   |   |  2008 |   |   |  2007 |   |
| Selected Quality Ratios(5):                                                                         |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing loans as a percent of total      loans receivable      |   |                                       | 0.09   | % |   |   | 0.38 | % |   |   | 0.72 | % |   |   | -- | % |   |   | 0.46 | % |
| Non-performing assets as a percent of total assets                                                  |   |                                       | 0.05   |   |   |   | 0.19 |   |   |   | 0.23 |   |   |   | 0.04 |   |   |   | 0.10 |   |
| Allowance for loan losses as a percent of total      loans receivable |   |                                       | 0.67   |   |   |   | 0.52 |   |   |   |  0.98 |   |   |   |  0.82 |   |   |   | 0.92 |   |
| Net charge-offs to average loans receivable                                                         |   |                                       | --     |   |   |   | 0.02 |   |   |   | 0.03 |   |   |   | -- |   |   |   | -- |   |
| Allowance for loan losses as a percent ofnon-performing loans                                       |   |                                       | 738.60 |   |   |   | 135.83 |   |   |   | 133.52 |   |   |   |  -- |   |   |   | 202.59 |   |
| Bank Capital Ratios(5):                                                                             |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tangible capital ratio                                                                              |   |                                       | 18.18  | % |   |   | 16.47 | % |   |   | 18.93 | % |   |   | 20.21 | % |   |   | 22.79 | % |
| Core capital ratio                                                                                  |   |                                       | 18.18  |   |   |   | 16.47 |   |   |   | 18.93 |   |   |   | 20.21 |   |   |   | 22.79 |   |
| Total capital ratio                                                                                 |   |                                       | 35.17  |   |   |   | 33.67 |   |   |   | 54.77 |   |   |   | 73.08 |   |   |   | 80.63 |   |
| Other Data:                                                                                         |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full service offices                                                                                |   |                                       | 5      |   |   |   | 4 |   |   |   | 4 |   |   |   | 3 |   |   |   | 3 |   |
| Employees (full-time)                                                                               |   |                                       | 41     |   |   |   | 39 |   |   |   | 22 |   |   |   | 17 |   |   |   | 17 |   |

|              |   |
|-------------------|--------|
| _________________ |   |

| (1)    | Includes merger and stock issuance related expense of $133,000 and $883,000 for the years ended June 30, 2009 and 2008, respectively.                                                                                                                                             |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                              |
| (2)    | With the exception of end of period ratios, all ratios are based on average monthly balances during the indicated periods.                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                              |
| (3)    | Average interest rate spread represents the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities, and net interest margin represents net interest income as a percentage of average interest-earning assets. |
|   |                                                                                                                                                                                                                                                                              |
| (4)    | The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income.                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                              |
| (5)    | Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable.                                                                                                                                                         |

----

| ·   | Continuing to Grow and Diversify Our Loan Portfolio by, among other things, emphasizing our origination of commercial real estate and business loans.  Home Federal Bancorp’s traditional lending activity historically had been concentrated on the origination of single-family residential loans and, to a lesser degree, consumer loans. Beginning in 2009, we hired three senior commercial loan officers to develop a loan portfolio more consistent with that of a community bank. At June 30, 2011, our commercial real estate loans amounted to $32.8 million, or 25.9% of the total loan portfolio, compared to $15.4 million, or 16.4% at June 30, 2010. Our commercial business loans at June 30, 2011 amounted to $10.2 million or 8.1% of the total loan portfolio compared to $9.5 million, or 10.1% at June 30, 2010. Commercial real estate, commercial business, construction and development and consumer loans all typically have higher yields and are more interest sensitive than long-term single-family residential mortgage loans. We plan to continue to grow and diversify our loan portfolio, and we intend to continue to grow our holdings of commercial real estate and business loans. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Diversify Our Products and Services.  We intend to continue to emphasize increasing the amount of our commercial business products to provide a full-service banking relationship to our commercial customers. We have also introduced mobile and Internet banking and remote deposit capture, to better serve our commercial clients. Additionally, we have developed new deposit products focused on expanding our deposit base to new types of customers. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Managing Our Expenses.  In recent periods, we have incurred significant additional expenses related to personnel and infrastructure. While our total non-interest expense increased $1.3 million in fiscal 2011 compared to 2010, we expect such increases will moderate in the future. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Enhancing Core Earnings.  We expect to improve our interest rate spread by emphasizing commercial real estate and business loans which generally bear interest rates higher than residential real estate loans and selling most of our fixed rate residential mortgage loan originations. The weighted average yield on our loan portfolio for the year ended June 30, 2011 was 6.62% and average interest rate spread for the year ended June 30, 2011 was 3.09% as compared to 2.91% for the year ended June 30, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Expanding Our Franchise in our Market Area and Contiguous Communities.  We intend to pursue opportunities to expand our market area by opening additional de novo banking offices and possibly, through acquisitions of other financial institutions and banking related businesses (although we have no current plans, understandings or agreements with respect to any specific acquisitions). We expect to focus on contiguous areas to our current locations in Caddo and Bossier Parishes. Our first branch office in North Bossier opened in October 2010 and we may develop a site in South Bossier in the future. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintain Our Asset Quality.  At June 30, 2011, our non-performing assets totaled $114,000 or 0.05% of total assets. We had no real estate owned or troubled debt restructurings at June 30, 2011. We intend to continue to stress maintaining high asset quality even as we continue to grow our institution and diversity our loan portfolio. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Cross-Selling Products and Services and Emphasizing Local Decision.  We have promoted cross-selling products and services in our branch offices and emphasized our local decision making and streamlined loan approval process. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|------------------------------------------------------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                  |   | Yield/                       |                                                 |   | 2011          |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   | Rate                         |                                                 |   |          |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   | at June 30,             |                                                 |   | Average       |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2011                         |                                                 |   | Balance       |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |  (Dollars in thousands) |
| Interest-earning assets:                                                                                                                                                                                                                                                                                                                                                                              |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Investment securities                                                                               |   |                         | 2.91                                                 | %      |          | $      | 67,024 |   |   | $ | 2,627 |   |   |   | 3.92 | % |   | $ | 78,880 |   |   | $ | 3,942 |   |   |   | 5.00 | % |
|      Loans receivable                                                                                    |   |                         |      5.65                   |   |          |   | 115,505 |   |   |   |    7,647 |   |   |   |    6.62 |   |   |   | 77,879 |   |   |   | 5,218 |   |   |   | 6.70 |   |
| Interest-earning deposits                                                                                                                                                                                                                                                                                                                                                                   |   |                         |         0.19 |   |          |   |    14,793 |   |   |   |         23 |   |   |   |     0.16 |   |   |   |     7,163 |   |   |   |        9 |   |   |   |      0.13 |   |
|           Total interest-earning assets                                                                                                                                                                                                                                                                                                             |   |                         | 4.46                                                 | %      |          |   | 197,322 |   |   |   | 10,297 |   |   |   | 5.22 | % |   |   | 163,922 |   |   |   | 9,169 |   |   |   | 5.59 | % |
| Non-interest-earning assets                                                                                                                                                                                                                                                                                                                                                       |   |                         |                                                 |   |          |   | 10,444 |   |   |   |   |   |   |   |   |   |   |   | 4,787 |   |   |   |   |   |   |   |   |   |
|           Total assets                                                          |   |                         |                                                 |   |          | $      |  207,766 |   |   |   |   |   |   |   |   |   |   | $ | 168,709 |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                         |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Savings accounts                                                                                    |   |                         | 0.52                                                 | %      |          |   | 6,125 |   |   |   | 25 |   |   |   | 0.41 | % |   |   | 5,588 |   |   |   | 23 |   |   |   | 0.41 | % |
|      NOW accounts                                                                                        |   |                         | 0.84                                                 |   |          |   | 10,384 |   |   |   | 65 |   |   |   | 0.63 |   |   |   |  5,583 |   |   |   | 22 |   |   |   | 0.39 |   |
|      Money market accounts                                                                                                                                                                                                                                                                                                                |   |                         | 0.96                                                 |   |          |   | 27,542 |   |   |   | 260 |   |   |   | 0.94 |   |   |   | 14,377 |   |   |   | 183 |   |   |   | 1.27 |   |
|      Certificate accounts                                                                                |   |                         |    2.34                               |   |          |   |   78,971 |   |   |   | 1,929 |   |   |   | 2.44 |   |   |   | 67,981 |   |   |   | 2,010 |   |   |   | 2.96 |   |
|           Total deposits                                                        |   |                         | 1.78                                                 |   |          |   | 123,022 |   |   |   | 2,279 |   |   |   | 1.85 |   |   |   | 93,529 |   |   |   | 2,238 |   |   |   | 2.39 |   |
| FHLB advances                                                                                                                     |   |                         | 2.85                                                 |   |          |   | 26,630 |   |   |   | 907 |   |   |   | 3.41 |   |   |   | 35,529 |   |   |   | 1,219 |   |   |   | 3.43 |   |
|           Total interest-bearing liabilities                                                                                                                                                                                                                                                                                                        |   |                         | 1.95                                                 | %      |          |   | 149,652 |   |   |   | 3,186 |   |   |   | 2.13 | % |   |   | 129,058 |   |   |   | 3,457 |   |   |   | 2.68 | % |
| Non-interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                                                     |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Non-interest bearing demand accounts                                                                                                                                                                                                                                                                                                                                    |   |                         |                                                 |   |          |   | 12,302 |   |   |   |   |   |   |   |   |   |   |   | 5,940 |   |   |   |   |   |   |   |   |   |
|      Other liabilities                                                                                   |   |                         |                                                 |   |          |   | 2,473 |   |   |   |   |   |   |   |   |   |   |   | 1,696 |   |   |   |   |   |   |   |   |   |
|           Total liabilities                                                     |   |                         |                                                 |   |          |   | 164,427 |   |   |   |   |   |   |   |   |   |   |   | 136,694 |   |   |   |   |   |   |   |   |   |
| Total Stockholders’ Equity(1)                                                                                                                                                                                                                                                                                                                                          |   |                         |                                                 |   |          |   | 43,339 |   |   |   |   |   |   |   |   |   |   |   | 32,015 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Total liabilities and equity                                                                                                                                                                                                                                                                                                              |   |                         |                                                 |   |          | $      | 207,766 |   |   |   |   |   |   |   |   |   |   | $ | 168,709 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                                                                                                                                                                                                                                                                                                                            |   |                         |                                                 |   |          | $      | 47,670 |   |   |   |   |   |   |   |   |   |   | $ | 34,864 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income; average interest rate spread(2)                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   |          |   |   |   |   | $ | 7,111 |   |   |   | 3.09 | % |   |   |   |   |   | $ | 5,712 |   |   |   | 2.91 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin(3)                                                                                                                                                                                                                                                                                                                                                                 |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   | 3.60 | % |   |   |   |   |   |   |   |   |   |   | 3.48 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest-earning assets to average  interest-bearing liabilities                                                                                                                                                                                                                                                                                                          |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   | 131.85 | % |   |   |   |   |   |   |   |   |   |   | 127.01 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |                                                 |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   |  __________________ |
|--------|--------------------------|

| (1) | Includes retained earnings and accumulated other comprehensive loss. |
|-----|----------------------------------------------------------------------|

| (2) | Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on interest-bearing liabilities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net interest margin is net interest income divided by net average interest-earning assets. |
|-----|--------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2011 vs. 2010 |                             |   |   | 2010 vs. 2009 |                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------------------------------|--------|--------|---------------|----------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | Increase (Decrease)              |   |   |          | Total                |   |   |   | Increase (Decrease) |   |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   | Due to        |                             |   |   | Increase      |                 |   |   | Due to |   |   |   | Increase |   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   | Rate          |                             |   |   | Volume        |                 |   |   | (Decrease) |   |   |   | Rate |   |   |   | Volume |   |   |   | (Decrease) |   |
| Interest income:                                                                                                                                                                                                                                                                                                                                                                                                 |   |          |                             |   |   |          | (In thousands)  |   |   |   |   |   |
| Investment securities                                                                           |   | $             | (723                             | )      |   | $             | (593                 | ) |   | $ | (1,316 | ) |   | $ | 39 |   |   | $ | (1,427 | ) |   | $ | (1,388 | ) |
| Loans receivable, net                                                                           |   |          | (92                              | )      |   |          | 2,521                |   |   |   | 2,429 |   |   |   | (126 | ) |   |   | 3,103 |   |   |   | 2,977 |   |
| Interest-earning deposits                                                                       |   |          | 5                                |   |   |          | 10                   |   |   |   | 15 |   |   |   | (23 | ) |   |   | 7 |   |   |   | (16 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |                             |   |   |          |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets                                                                   |   |          | (810                             | )      |   |          | 1,938                |   |   |   | 1,128 |   |   |   | (110 | ) |   |   | 1,683 |   |   |   | 1,573 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |                             |   |   |          |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                                                                                                                                                                                                                                                                                                                                                                                |   |          |                             |   |   |          |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                                                |   |          | --                               |   |   |          | 2                    |   |   |   | 2 |   |   |   | (3 | ) |   |   | (1 | ) |   |   | (4 | ) |
| NOW accounts                                                                                    |   |          | 22                               |   |   |          | 21                   |   |   |   | 43 |   |   |   | (9 | ) |   |   | 10 |   |   |   | 1 |   |
| Money market accounts                                                                           |   |          | (90                              | )      |   |          | 167                  |   |   |   | 77 |   |   |   | 55 |   |   |   | 90 |   |   |   | 145 |   |
| Certificate accounts                                                                            |   |          | (406                             | )      |   |          | 325                  |   |   |   | (81 | ) |   |   | (605 | ) |   |   | 239 |   |   |   | (366 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |                             |   |   |          |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total deposits                                                                                  |   |          | (474                             | )      |   |          | 515                  |   |   |   | 41 |   |   |   | (562 | ) |   |   | 338 |   |   |   | (224 | ) |
| FHLB advances                                                                              |   |          |      (8 | )      |   |          |   (305     | ) |   |   |    (313 | ) |   |   |   (145 | ) |   |   |      (12 | ) |   |   |      (157 | ) |
| Total interest-bearing liabilities                                                              |   |          | (482                             | )      |   |          | 210                  |   |   |   | (272 | ) |   |   | (707 | ) |   |   | 326 |   |   |   | (381 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |                             |   |   |          |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (Decrease) in net interest income                                                                                                                                                                                                                                                                                                                                                                       |   | $             | (328                             | )      |   | $             | 1,728                |   |   | $ | 1,400 |   |   | $ | 597 |   |   | $ | 1,357 |   |   | $ | 1,954 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   |          |                             |   |   |          |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|   |   Change in Interest Rates in |                                                                                                                                                                                             |   | Net Portfolio Value |                   |   |   | NPV as % of PortfolioValue of Assets |   |
|--------|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------------------|--------|--------|--------------------------------------|--------|
|   | Basis Points (Rate Shock)          |                                                                                                                                                                                             |   | Amount              |                   |   |   | $ Change                             |   |   |   | % Change |   |   |   | NPV Ratio |   |   |   | Change |   |
|   |                               |                                                                                                                                                                                             |   |                | (Dollars in thousands) |   |
|   | 300                                |                                                                                                                                                                                             |   | $                   | 39,894                 |   |   | $                                    | (7,940 | ) |   |   | (16.60 | )% |   |   | 18.03 | % |   |   | (2.36 | )% |
|   | 200                                |                                                                                                                                                                                             |   |                | 42,999                 |   |   |                                 | (4,835 | ) |   |   | (10.11 | ) |   |   | 19.03 |   |   |   | (1.36 | ) |
|   | 100                                |                                                                                                                                                                                             |   |                | 45,710                 |   |   |                                 | (2,124 | ) |   |   | (4.44 | ) |   |   | 19.83 |   |   |   | (0.56 | ) |
|   | Static                             |                                                                                                                                                                                             |   |                | 47,833                 |   |   |                                 | --     |   |   |   | -- |   |   |   | 20.39 |   |   |   | -- |   |
|   | (50)                               |                                  |   |                | 48,363                 |   |   |                                 | 529    |   |   |   | 1.11 |   |   |   | 20.48 |   |   |   | 0.09 |   |
|   | (100)                              |                                       |   |                | 49,000                 |   |   |                                 | 1,166  |   |   |   | 2.44 |   |   |   | 20.63 |   |   |   | 0.24 |   |

----

----

----

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|                                                   |   |   |   |
| Consolidated Balance Sheets                            |   |   |   |
| June 30, 2011 and 2010                                 |   |   |   |

|                                                 |   |  2011     |    |   |  2010 |   |
|------------------------------------------------------|--------|----------------|---------|--------|------------|--------|
| Assets                                               |   | (In Thousands) |    |
| Cash and Cash Equivalents (Includes Interest-Bearing |   |           |    |   |       |   |
| Deposits with Other Banks of $6,422 and              |   |           |    |   |       |   |
| $4,698 for 2011 and 2010, Respectively)              |   | $              | 9,599   |   |       | $      | 8,837 |   |
| Securities Available-for-Sale                        |   |           | 75,039  |   |       |   | 63,688 |   |
| Securities Held-to-Maturity                          |   |           | 5,725   |   |       |   | 2,138 |   |
| Loans Held-for-Sale                                  |   |           | 6,653   |   |       |   | 13,403 |   |
| Loans Receivable, Net                                |   |           | 125,371 |   |       |   | 93,056 |   |
| Accrued Interest Receivable                          |   |           | 801     |   |       |   | 560 |   |
| Premises and Equipment, Net                          |   |           | 3,937   |   |       |   | 3,049 |   |
| Bank Owned Life Insurance                            |   |           | 5,639   |   |       |   | - |   |
| Other Assets                                         |   |           | 556     |   |       |   | 414 |   |
|                                                 |   |           |    |   |       |   |   |   |
| Total Assets                                         |   | $              | 233,320 |   |       | $      | 185,145 |   |

| Liabilities and Stockholders' Equity            |   |   |    |   |   |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                            |   |   |    |   |   |   |
| Liabilities                                     |   |   |    |   |   |   |
| Deposits                                        |   | $      | 153,616 |   |   | $      | 117,722 |   |
| Advances from Borrowers for Taxes and Insurance |   |   | 235     |   |   |   | 205 |   |
| Advances from Federal Home Loan Bank of Dallas  |   |   | 26,891  |   |   |   | 31,507 |   |
| Other Accrued Expenses and Liabilities          |   |   | 960     |   |   |   | 1,425 |   |
| Deferred Tax Liability                          |   |   | 435     |   |   |   | 921 |   |
|                                            |   |   |    |   |   |   |   |   |
| Total Liabilities                               |   |   | 182,137 |   |   |   | 151,780 |   |

|                                                            |   |   |   |   |   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Stockholders' Equity                                            |   |   |   |   |   |   |
| Preferred Stock - $.01 Par Value; 10,000,000 Shares Authorized; |   |   |   |   |   |   |
| None Issued and Outstanding                                     |   |   |   |   |   |   |
| Common Stock - $.01 Par Value; 40,000,000 Shares Authorized;    |   |   |   |   |   |   |
| 3,045,829 Shares Issued; 3,045,829 Shares Outstanding at        |   |   |   |   |   |   |
| June 30, 2011 and 3,348,237 Shares Outstanding at June 30, 2010 |   |   | 32     |   |   |   | 14 |   |
| Additional Paid-In Capital                                      |   |   | 30,880 |   |   |   | 13,655 |   |
| Treasury Stock, at Cost - None at June 30, 2011                 |   |   |   |   |   |   |   |   |
| and 210,721 Shares at June 30, 2010                             |   |   | -      |   |   |   | (2,094 | ) |
| Unearned ESOP Stock                                             |   |   | (1,907 | )      |   |   | (826 | ) |
| Unearned RRP Trust Stock                                        |   |   | (29    | )      |   |   | (145 | ) |
| Retained Earnings                                               |   |   | 20,781 |   |   |   | 20,665 |   |
| Accumulated Other Comprehensive Income                          |   |   | 1,426  |   |   |   | 2,096 |   |

|                                       |   |   |    |   |   |   |    |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|
| Total Stockholders' Equity                 |   |   | 51,183  |   |   |   | 33,365  |   |
|                                       |   |   |    |   |   |   |    |   |
| Total Liabilities and Stockholders' Equity |   | $      | 233,320 |   |   | $      | 185,145 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |       |
|--------------------------------------------------------|------------|
|                                                   |       |
| Consolidated Statements of Operations                  |       |
| For the Years Ended June 30, 2011 and 2010             |       |
|                                                   |  2011 |   | 2010 |   |
| (In Thousands, Except Per Share Data)                  |       |
| Interest Income                                        |       |   |   |   |   |   |
|     Loans, Including Fees               |       | $ | 7,647 |   |   | $ | 5,218 |   |
|     Mortgage-Backed Securities          |       |   | 2,474 |   |   |   | 3,874 |   |
|     Investment Securities               |       |   | 153 |   |   |   | 69 |   |
|     Other Interest-Earning Assets       |       |   | 23 |   |   |   | 8 |   |
| Total Interest Income                                  |       |   | 10,297 |   |   |   | 9,169 |   |
| Interest Expense                                       |       |   |   |   |   |   |   |   |
| Deposits                                               |       |   | 2,279 |   |   |   | 2,238 |   |
|     Federal Home Loan Bank Borrowings   |       |   | 907 |   |   |   | 1,220 |   |
| Total Interest Expense                                 |       |   | 3,186 |   |   |   | 3,458 |   |
| Net Interest Income                                    |       |   | 7,111 |   |   |   | 5,711 |   |
| Provision for Loan Losses                              |       |   | 353 |   |   |   | 36 |   |
| Net Interest Income after                              |       |   |   |   |   |   |   |   |
|    Provision for Loan Losses            |       |   | 6,758 |   |   |   | 5,675 |   |
| Non-Interest Income                                    |       |   |   |   |   |   |   |   |
|    Gain on Sale of Loans                     |       |   | 1,795 |   |   |   | 644 |   |
|    Gain on Sale of Securities                |       |   | 402 |   |   |   | 796 |   |
|    Loss on Sale of Real Estate               |       |   | - |   |   |   | (4 | ) |
|    Income on Bank Owned Life Insurance       |       |   | 26 |   |   |   | - |   |
|    Impairment Charge on Securities           |       |   | - |   |   |   | (627 | ) |
|    Other Income                              |       |   | 407 |   |   |   | 55 |   |
| Total Non-Interest Income                              |       |   | 2,630 |   |   |   | 864 |   |
| Non-Interest Expense                                   |       |   |   |   |   |   |   |   |
|    Compensation and Benefits                 |       |   | 4,068 |   |   |   | 3,383 |   |
|    Occupancy and Equipment                   |       |   | 550 |   |   |   | 406 |   |
|    Franchise and Bank Shares Tax             |       |   | 248 |   |   |   | 150 |   |
|    Advertising                               |       |   | 256 |   |   |   | 136 |   |
|    Data Processing                           |       |   | 233 |   |   |   | 112 |   |
|    Audit and Examination Fees                |       |   | 223 |   |   |   | 174 |   |
|    Legal Fees                                |       |   | 165 |   |   |   | 203 |   |
|    Loan and Collection Expense               |       |   | 133 |   |   |   | 68 |   |
|    Other Expenses                            |       |   | 636 |   |   |   | 564 |   |
| Total Non-Interest Expense                             |       |   | 6,512 |   |   |   | 5,196 |   |
| Income Before Income Taxes                             |       |   | 2,876 |   |   |   | 1,343 |   |
| Provision for Income Tax Expense                       |       |   | 938 |   |   |   | 673 |   |
| Net Income                                             |       | $ | 1,938 |   |   | $ | 670 |   |
| Earnings Per Share                                     |       |   |   |   |   |   |   |   |
| Basic                                                  |       | $ | 0.67 |   |   | $ | 0.21 |   |
|     Diluted                             |       | $ | 0.67 |   |   | $ | 0.21 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |   |
|--------------------------------------------------------|--------|
|                                                   |   |
| Consolidated Statements of Comprehensive Income        |   |
| For the Years Ended June 30, 2011 and 2010             |   |
|                                                   |   |
|                                                   |   |   |   |   |   | 2011 |   | 2010 |   |
|                                                   |   |   |   |   |   | (In Thousands) |

|                                                        |   |   |   |   |   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net Income                                                  |   | $      | 1,938  |   |   | $      | 670 |   |
|                                                        |   |   |   |   |   |   |   |   |
| Other Comprehensive (Loss) Income, Net of Tax               |   |   |   |   |   |   |   |   |
| Unrealized Holding (Loss) Gain Arising During the Period    |   |   | (396   | )      |   |   | 1,968 |   |
| Reclassification Adjustment for Gain Included in Net Income |   |   | (274   | )      |   |   | (311 | ) |
|                                                        |   |   |   |   |   |   |   |   |
| Total Other Comprehensive (Loss) Income                     |   |   | (670   | )      |   |   | 1,657 |   |
|                                                        |   |   |   |   |   |   |   |   |
| Total Comprehensive Income                                  |   | $      | 1,268  |   |   | $      | 2,327 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY       |
|--------------------------------------------------------------|
|                                                         |
| Consolidated Statements of Changes in Stockholders' Equity   |
| For the Years Ended June 30, 2011 and 2010                   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |
|                                                         |   |   |   |   |   | Additional |   | Unearned |   |   |   | Other |   | Unearned |   |   |   | Total |
|                                                         |   |   |   | Common |   | Paid-In |   | ESOP |   | Retained |   | Comprehensive |   | RRP Trust |   | Treasury |   | Stockholders' |
|                                                         |   |   |   | Stock |   | Capital |   | Stock |   | Earnings |   | Income (Loss) |   | Stock |   | Stock |   | Equity |
|                                                         |   |   |   |   |   |   |   | (In Thousands) |   |   |   |   |   |   |
| Balance - June 30, 2009                                      |  $              14 |   |  $      13,608 |   |  $         (883) |   |  $              20,288 |   |  $                    439 |   |  $            (269) |   |  $      (1,887) |   |  $             31,310 |
| ESOP Compensation Earned                                     |                   - |   |               (10) |   |                57 |   |                - |   |                          - |   |                   - |   |                   - |   |                 47 |
| Distribution of RRP Trust Stock                              |                   - |   |                  - |   |                 - |   |                - |   |                          - |   |                 124 |   |                   - |   |               124 |
| Dividends Paid                                               |                   - |   |                  - |   |                 - |   |            (293) |   |                          - |   |                   - |   |                   - |   |             (293) |
| Stock Options Vested                                         |                   - |   |                 57 |   |                 - |   |                - |   |                          - |   |                   - |   |                   - |   |                57 |
| Acquisition of Treasury Stock                                |                   - |   |                  - |   |                 - |   |                - |   |                          - |   |                   - |   |             (207) |   |            (207) |
| Net Income                                                   |                   - |   |                  - |   |                 - |   |              670 |   |                          - |   |                   - |   |                   - |   |             670 |
| Other Comprehensive Income,  Net                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      of Applicable Deferred Income Taxes |                   - |   |                  - |   |                 - |   |                - |   |                     1,657 |   |                   - |   |                   - |   |         1,657 |
| Balance - June 30, 2010                                      |  $              14 |   |  $       13,655 |   |  $        (826) |   |  $              20,665 |   |  $                 2,096 |   |  $            (145) |   |  $      (2,094) |   |  $             33,365 |
| ESOP Compensation Earned                                     |                   - |   |                 15 |   |               86 |   |                - |   |                          - |   |                   - |   |                   - |   |            101 |
| Common Stock Issuance                                        |                  20 |   |         18,020 |   |        (1,167) |   |                - |   |                          - |   |                   - |   |                   - |   |      16,873 |
| Distribution of RRP Trust Stock                              |                   - |   |                - |   |                - |   |                - |   |                          - |   |                 116 |   |                   - |   |           116 |
| Dividends Paid                                               |                   - |   |                - |   |                - |   |            (511) |   |                          - |   |                   - |   |                   - |   |          (511) |
| Stock Options Vested                                         |                   - |   |                17 |   |                 - |   |                - |   |                          - |   |                   - |   |                   - |   |             17 |
| Acquisition of Treasury Stock                                |                   - |   |                - |   |                - |   |                    - |   |                          - |   |                   - |   |               (46) |   |            (46) |
| Retirement of Treasury Stock                                 |                 (2) |   |             (827) |   |                - |   |         (1,311) |   |                          - |   |                   - |   |            2,140 |   |              - |
| Net Income                                                   |                   - |   |                  - |   |                   - |   |           1,938 |   |                          - |   |                   - |   |                   - |   |        1,938 |
| Other Comprehensive Loss, Net                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         | of Applicable Deferred Income Taxes |                   - |   |                  - |   |                   - |   |               - |   |                      (670) |   |                   - |   |                   - |   |          (670) |
| Balance - June 30, 2011                                      |  $              32 |   |  $     30,880 |   |  $      (1,907) |   |  $              20,781 |   |    $                1,426 |   |  $              (29) |   |    $                - |   |  $             51,183 |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY        |   |
|---------------------------------------------------------------|--------|
|                                                          |   |   |   |   |   |   |
| Consolidated Statements of Cash Flows                         |   |   |   |   |   |   |
| For the Years Ended June 30, 2011 and 2010                    |   |   |   |   |   |   |
|                                                          |   | 2011 |   |   | 2010 |   |
|                                                          |   | (In Thousands) |   |
| Cash Flows from Operating Activities                          |   |   |   |   |   |   |
| Net Income                                                    |   | $ | 1,938 |   |   | $ | 670 |   |
| Adjustments to Reconcile Net Income to Net                    |   |   |   |   |   |   |   |   |
| Cash Provided by (Used in) Operating Activities               |   |   |   |   |   |   |   |   |
| Gain on Sale of Loans                                         |   |   | (1,795 | ) |   |   | (644 | ) |
| Loss on Sale of Real Estate                                   |   |   | - |   |   |   | 4 |   |
| Net Amortization and Accretion on Securities                  |   |   | (16 | ) |   |   | (302 | ) |
| Amortization of Deferred Loan Fees                            |   |   | (101 | ) |   |   | (275 | ) |
| Provision for Loan Losses                                     |   |   | 353 |   |   |   | 36 |   |
| Depreciation of Premises and Equipment                        |   |   | 186 |   |   |   | 126 |   |
| Gain on Sale of Securities                                    |   |   | (402 | ) |   |   | (796 | ) |
| ESOP Compensation Expense                                     |   |   | 101 |   |   |   | 47 |   |
| Deferred Income Tax Benefit                                   |   |   | (140 | ) |   |   | (27 | ) |
| Stock Option Expense                                          |   |   | 17 |   |   |   | 57 |   |
| Recognition and Retention Plan Expense                        |   |   | 19 |   |   |   | 118 |   |
| Impairment Charge on Investments                              |   |   | - |   |   |   | 627 |   |
| Increase in Cash Surrender Value of Bank Owned Life Insurance |   |   | (26 | ) |   |   | - |   |
| Changes in Assets and Liabilities:                            |   |   |   |   |   |   |   |   |
| Origination and Purchase of Loans Held-for-Sale               |   |   | (109,753 | ) |   |   | (83,679 | ) |
| Sale and Principal Repayments on Loans Held-for-Sale          |   |   | 118,297 |   |   |   | 72,198 |   |
| Accrued Interest Receivable                                   |   |   | (241 | ) |   |   | (17 | ) |
| Other Operating Assets                                        |   |   | (142 | ) |   |   | (249 | ) |
| Other Operating Liabilities                                   |   |   | (367 | ) |   |   | 348 |   |
| Net Cash Provided by (Used in) Operating Activities           |   |   | 7,928 |   |   |   | (11,758 | ) |
| Cash Flows from Investing Activities                          |   |   |   |   |   |   |   |   |
| Loan Originations and Principal Collections, Net              |   |   | (32,677 | ) |   |   | (46,275 | ) |
| Proceeds from Sale of Real Estate                             |   |   | - |   |   |   | 174 |   |
| Deferred Loan Fees Collected                                  |   |   | 111 |   |   |   | 419 |   |
| Acquisition of Premises and Equipment                         |   |   | (1,075 | ) |   |   | (2,371 | ) |
| Investment in Bank Owned Life Insurance                       |   |   | (5,612 | ) |   |   | - |   |
| Activity in Available-for-Sale Securities:                    |   |   |   |   |   |   |   |   |
| Proceeds from Sales of Securities                             |   |   | 10,752 |   |   |   | 17,466 |   |
| Principal Payments on Mortgage-Backed Securities              |   |   | 14,229 |   |   |   | 14,474 |   |
| Purchases                                                     |   |   | (36,932 | ) |   |   | - |   |
| Activity in Held-to-Maturity Securities:                      |   |   |   |   |   |   |   |   |
| Redemption or Maturity Proceeds                               |   |   | 558 |   |   |   | - |   |
| Principal Payments on Mortgage-Backed Securities              |   |   | 113 |   |   |   | 81 |   |
| Purchases                                                     |   |   | (4,257 | ) |   |   | (34 | ) |
| Net Cash Used in Investing Activities                         |   |   | (54,790 | ) |   |   | (16,066 | ) |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |   |
|--------------------------------------------------------|--------|
|                                                   |   |   |   |   |   |   |
| Consolidated Statements of Cash Flows (Continued)      |   |   |   |   |   |   |
| For the Years Ended June 30, 2011 and 2010             |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |
|                                                   |   |
|                                                   |   | 2011 |   |   | 2010 |   |
|                                                   |   | (In Thousands) |   |
| Cash Flows from Financing Activities                   |   |   |   |   |   |   |
| Net Increase in Deposits                               |   |   | 35,894 |   |   |   | 31,576 |   |
| Proceeds from Advances from Federal Home Loan Bank     |   |   | 5,000 |   |   |   | 21,000 |   |
| Repayment of Advances from Federal Home Loan Bank      |   |   | (9,616 | ) |   |   | (25,490 | ) |
| Dividends Paid                                         |   |   | (511 | ) |   |   | (293 | ) |
| Acquisition of Treasury Stock                          |   |   | (46 | ) |   |   | (207 | ) |
| Net Increase Decrease in Advances from Borrowers for   |   |   |   |   |   |   |   |   |
| Taxes and Insurance                                    |   |   | 30 |   |   |   | 68 |   |
| Proceeds from Stock Issuance, Net                      |   |   | 18,040 |   |   |   | - |   |
| Acquisition of Stock for Benefit Plans                 |   |   | (1,167 | ) |   |   | - |   |
|                                                   |   |   |   |   |   |   |   |   |
| Net Cash Provided by Financing Activities              |   |   | 47,624 |   |   |   | 26,654 |   |
|                                                   |   |   |   |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents   |   |   | 762 |   |   |   | (1,170 | ) |
|                                                   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Year           |   |   | 8,837 |   |   |   | 10,007 |   |
|                                                   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year                 |   | $ | 9,599 |   |   | $ | 8,837 |   |
|                                                   |   |   |   |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information       |   |   |   |   |   |   |   |   |
| Interest Paid on Deposits and Borrowed Funds           |   | $ | 3,212 |   |   | $ | 3,501 |   |
| Income Taxes Paid                                      |   |   | 1,091 |   |   |   | 614 |   |
| Market Value Adjustment for (Loss) Gain on Securities  |   |   |   |   |   |   |   |   |
| Available-for-Sale                                     |   |   | (1,016 | ) |   |   | 2,511 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Nature of Operations |
|--------|----------------------|

|   | On January 18, 2005, Home Federal Bank (the Bank), formerly known as Home Federal Savings and Loan Association of Shreveport, completed its reorganization to the mutual holding company form of organization and formed Home Federal Bancorp, Inc. of Louisiana, a federally chartered corporation (the Mid-Tier Company) to serve as the stock holding company for the Bank.  In connection with the reorganization, the Mid-Tier Company sold 1,423,583 shares of its common stock in a subscription and community offering at a price of $10.00 per share.  The Mid-Tier Company also issued 60% of its outstanding common stock in the reorganization to Home Federal Mutual Holding Company of Louisiana, or 2,135,375 shares. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On December 22, 2010, Home Federal Mutual Holding Company completed its second step conversion from the mutual holding company form of organization to the fully public stock holding company structure pursuant to a Plan of Conversion and Reorganization.  Upon completion of the conversion, Home Federal Bancorp, Inc. of Louisiana, a newly formed Louisiana chartered corporation (the Company), became the holding company for Home Federal Bank, and Home Federal Mutual Holding Company of Louisiana and the Mid-Tier Company ceased to exist.  As part of the conversion, all outstanding shares of the Mid-Tier Company common stock (other than those owned by Home Federal Mutual Holding Company) were converted into the right to receive 0.9110 of a share of the newly formed Home Federal Bancorp, Inc. of Louisiana common stock resulting in approximately 1,100,609 shares issued in the exchange and cash in lieu of fractional shares.  In addition, a total of 1,945,220 shares of common stock, par value $0.01 per share, of Home Federal Bancorp, Inc. of Louisiana were sold in subscription, community and syndicated community offerings to certain depositors and borrowers of the Bank, the Bank’s Employee Stock Ownership Plan, and other investors for $10.00 per share, or $19.5 million in aggregate.  Treasury stock held was cancelled in the conversion.  The net proceeds of the offering were approximately $18.0 million, after offering expenses. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Bank is subject to competition from other financial institutions, and is also subject to the regulations of certain Federal and State agencies and undergoes periodic examinations by those regulatory authorities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Basis of Presentation and Consolidation |
|--------|-----------------------------------------|

|   | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Home Federal Bank.  All significant intercompany balances and transactions have been eliminated. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting periods.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses and deferred taxes. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Most of the Company’s activities are provided to customers of the Bank by four branch offices, three of which are located in the city of Shreveport, Louisiana and one in Bossier City, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash and Cash Equivalents |
|--------|---------------------------|

|   | For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                  |   | 2011           |   |   | 2010   |   |
|--------|---------------------------------------|--------|----------------|--------|--------|--------|--------|
|   |                                  |   | (In Thousands) |   |
|   | Cash on Hand      |   | $              | 717    |   |   | $      | 320 |   |
|   | Demand Deposits at Other Institutions |   |           | 3,785  |   |   |   | 6,625 |   |
|   | Federal Funds Sold          |   |           | 5,097  |   |   |   | 1,892 |   |
|   | Total                                 |   | $              | 9,599  |   |   | $      | 8,837 |   |

|   | Securities are being accounted for in accordance with FASB Accounting Standards Codification (“ASC”) 320, Investments - Debt and Equity Securities. ASC 320 requires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity.  Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loans |
|--------|-------|

|   | Loans receivable are stated at unpaid principal balances, less allowances for loan losses and unamortized deferred loan fees.  Net non-refundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interest income on contractual loans receivable is recognized on the accrual method.  Unearned discounts are deferred and amortized on the interest method over the life of the loan. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | An allowance is also established for uncollectible interest on loans classified as substandard. Substandard loans are those which are in excess of ninety days delinquent.  The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received.  When, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | It should be understood that estimates of future loan losses involve an exercise of judgment.  While it is possible that in particular periods the Company may sustain losses, which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of condition is adequate to absorb known and inherent losses in the existing loan portfolio both probable and reasonable to estimate. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Off-Balance Sheet Credit Related Financial Instruments                                                                                                               |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | In the ordinary course of business, the Bank has entered into commitments to extend credit.  Such financial instruments are recorded when they are funded. |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

|   | Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are carried at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure.  Cost is defined as the lower of the fair value of the property or the recorded investment in the loan.  Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.  Estimated useful lives are as follows: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Buildings and Improvements                                 10 - 40 Years |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Furniture and Equipment                                          3 - 10 Years |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Bank-Owned Life Insurance |
|--------|---------------------------|

|   | The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity will pay its pro-rata share of income taxes in accordance with a written tax-sharing agreement. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized.  Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Earnings per Share                                                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------|
|   | Earnings per share are computed based upon the weighted average number of common shares outstanding during the year. |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

|   | Non-Direct Response Advertising |
|--------|---------------------------------|

|   | The Company expenses all advertising costs, except for direct-response advertising, as incurred.  Non-direct response advertising costs were $256,000 and $136,000 for the years ended June 30, 2011 and 2010, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Stock-Based Compensation |
|--------|--------------------------|

|   | GAAP requires all share-based payments to employees, including grants of employee stock options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options or recognition and retention share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards.  This guidance applies to awards granted or modified after January 1, 2006, or any unvested awards outstanding prior to that date. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Comprehensive Income |
|--------|----------------------|

|   | Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Balance Sheets, such items, along with net income, are components of comprehensive income. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The components of other comprehensive income and related tax effects are as follows: |
|--------|--------------------------------------------------------------------------------------|

|                                      |   | 2011           |   |   | 2010   |   |
|-------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                      |   | (In Thousands) |   |
| Unrealized Holding (Loss) Gain on         |   |           |   |   |   |   |
|  Available-for-Sale Securities  |   | $              | (600   | )      |   | $      | 2,982 |   |
| Reclassification Adjustment for Gain      |   |           |   |   |   |   |   |   |
|  Realized in Income             |   |           | (416   | )      |   |   | (471 | ) |
|                                      |   |           |   |   |   |   |   |   |
| Net Unrealized (Loss) Gain                |   |           | (1,016 | )      |   |   | 2,511 |   |
| Tax Effect                 |   |           | 346    |   |   |   | (854 | ) |
|                                      |   |           |   |   |   |   |   |   |
| Net-of-Tax Amount                         |   | $              | (670   | )      |   | $      | 1,657 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 1. | Summary of Significant Accounting Policies (Continued) |
|---------|--------------------------------------------------------|

|   |                              |   | 2011           |   |   | 2010   |   |
|--------|-----------------------------------|--------|----------------|--------|--------|--------|--------|
|   |                              |   | (In Thousands) |   |
|   | Net Unrealized Gain on Securities |   |           |   |   |   |   |   |   |
|   | Available-for-Sale                |   | $              | 2,161  |   |   | $      | 3,176 |   |
|   | Tax Effect         |   |           | (735   | )      |   |   | (1,080 | )  |
|   |                              |   |           |   |   |   |   |   |   |
|   | Net-of-Tax Amount                 |   | $              | 1,426  |   |   | $      | 2,096 |   |

|   | Recent Accounting Pronouncements |
|--------|----------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                                |   |           |   |   |       |           |   |       |   |   |   |   |
|-------------------------------------|--------|----------------|--------|--------|------------|----------------|--------|------------|--------|--------|--------|--------|
|                                |   | June 30, 2011  |   |
|                                |   |           |   |   | Gross      |           |   | Gross      |   |   |   |   |
|                                |   | Amortized      |   |   | Unrealized |           |   | Unrealized |   |   | Fair   |   |
| Securities Available-for-Sale       |   | Cost           |   |   | Gains      |           |   | Losses     |   |   | Value  |   |
|                                |   | (In Thousands) |   |
| Debt Securities                     |   |           |   |   |       |           |   |       |   |   |   |   |
| FHLMC Mortgage-Backed               |   |           |   |   |       |           |   |       |   |   |   |   |
| Certificates                        |   | $              | 1,904  |   |       | $              | 103    |       |   | $      | -      |   |   | $ | 2,007 |   |
| FNMA Mortgage-Backed                |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Certificates                        |   |           | 32,806 |   |       |           | 1,832  |       |   |   | -      |   |   |   | 34,638 |   |
| GNMA Mortgage-Backed                |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Certificates                        |   |           | 104    |   |       |           | 1      |       |   |   | -      |   |   |   | 105 |   |
| Government Agency Notes             |   |           | 36,774 |   |       |           | 207    |       |   |   | -      |   |   |   | 36,981 |   |
| Total Debt Securities               |   |           | 71,588 |   |       |           | 2,143  |       |   |   | -      |   |   |   | 73,731 |   |
| Equity Securities                   |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| 176,612 Shares, AMF ARM Fund        |   |           | 1,291  |   |       |           | 17     |       |   |   | -      |   |   |   | 1,308 |   |
| Total Securities Available-for-Sale |   | $              | 72,879 |   |       | $              | 2,160  |       |   | $      | -      |   |   | $ | 75,039 |   |
|                                |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Securities Held-to-Maturity         |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
|                                |   |           |   |   |       | (In Thousands) |   |       |   |   |   |
| Debt Securities                     |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| GNMA Mortgage-Backed                |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Certificates                        |   | $              | 145    |   |       | $              | 22     |       |   | $      | -      |   |   | $ | 167 |   |
| FNMA Mortgage-Backed                |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Certificates                        |   |           | 3,988  |   |       |           | 2      |       |   |   | 112    |   |   |   | 3,878 |   |
| FHLMC Mortgage-Backed               |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Certificates                        |   |           | 22     |   |       |           | 1      |       |   |   | -      |   |   |   | 23 |   |
| Total Debt Securities               |   |           | 4,155  |   |       |           | 25     |       |   |   | 112    |   |   |   | 4,068 |   |
| Equity Securities (Non-Marketable)  |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| 13,195 Shares - Federal Home        |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Loan Bank                           |   |           | 1,320  |   |       |           | -      |       |   |   | -      |   |   |   | 1,320 |   |
| 630 Shares - First National Bankers |   |           |   |   |       |           |   |       |   |   |   |   |   |   |   |   |
| Bankshares, Inc.                    |   |           | 250    |   |       |           | -      |       |   |   | -      |   |   |   | 250 |   |
| Total Equity Securities             |   |           | 1,570  |   |       |           | -      |       |   |   | -      |   |   |   | 1,570 |   |
| Total Securities Held-to-Maturity   |   | $              | 5,725  |   |       | $              | 25     |       |   | $      | 112    |   |   | $ | 5,638 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                          | June 30, 2010 |
|-------------------------------|---------------|
|                          |          | Gross | Gross |   |
|                          | Amortized     | Unrealized | Unrealized | Fair |
| Securities Available-for-Sale | Cost          | Gains | Losses | Value |

|   |   |   |   | (In Thousands) |
|--------|--------|--------|--------|----------------|

| Debt Securities                     |   |   |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| FHLMC Mortgage-Backed               |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                        |   | $      | 3,031  |   |   | $      | 175    |   |   | $      | -      |   |   | $ | 3,206 |   |
| FNMA Mortgage-Backed                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                        |   |   | 55,828 |   |   |   | 2,980  |   |   |   | -      |   |   |   | 58,808 |   |
| GNMA Mortgage-Backed                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                        |   |   | 115    |   |   |   | 1      |   |   |   | 1      |   |   |   | 115 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Debt Securities               |   |   | 58,974 |   |   |   | 3,156  |   |   |   | 1      |   |   |   | 62,129 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 210,350 Shares, AMF ARM Fund        |   |   | 1,538  |   |   |   | 21     |   |   |   | -      |   |   |   | 1,559 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Securities Available-for-Sale |   | $      | 60,512 |   |   | $      | 3,177  |   |   | $      | 1      |   |   | $ | 63,688 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held-to-Maturity         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   |   |   |   |   |   | (In Thousands) |   |   |
|--------|--------|--------|--------|--------|--------|----------------|--------|--------|

| Debt Securities                    |   |   |   |   |   |   |   |   |   |   |   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| GNMA Mortgage-Backed               |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                       |   | $      | 196    |   |   | $      | 22     |   |   | $      | -      |   |   | $ | 218 |   |
| FNMA Mortgage-Backed               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                       |   |   | 75     |   |   |   | 2      |   |   |   | -      |   |   |   | 77 |   |
| FHLMC Mortgage-Backed              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                       |   |   | 27     |   |   |   | 1      |   |   |   | -      |   |   |   | 28 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Debt Securities              |   |   | 298    |   |   |   | 25     |   |   |   | -      |   |   |   | 323 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity Securities (Non-Marketable) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 18,402 Shares - Federal Home       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Bank                          |   |   | 1,840  |   |   |   | -      |   |   |   | -      |   |   |   | 1,840 |   |
|                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Securities Held-to-Maturity  |   | $      | 2,138  |   |   | $      | 25     |   |   | $      | -      |   |   | $ | 2,163 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                         |   | Available-for-Sale |   | Held-to-Maturity |           |
|------------------------------|--------|--------------------|--------|------------------|----------------|
|                         |   | Amortized          |   |             | Fair           |   | Amortized |   |   | Fair |   |
|                         |   | Cost               |   |             | Value          |   | Cost |   |   | Value |   |
|                         |   |               |   |             | (In Thousands) |   |   |   |   |
| Within One Year or Less      |   | $                  | -      |             |           | $ | - |   |   | $ | - |   |   | $ | - |   |
| One through Five Years       |   |               | 36,775 |             |           |   | 36,982 |   |   |   | 22 |   |   |   | 23 |   |
| After Five through Ten Years |   |               | 609    |             |           |   | 622 |   |   |   | 116 |   |   |   | 127 |   |
| Over Ten Years               |   |               | 34,204 |             |           |   | 36,127 |   |   |   | 4,017 |   |   |   | 3,918 |   |
|                         |   |               |   |             |           |   |   |   |   |   |   |   |   |   |   |   |
| Total                        |   | $                  | 71,588 |             |           | $ | 73,731 |   |   | $ | 4,155 |   |   | $ | 4,068 |   |

|   |   |    June 30, 2011 |   |
|--------|--------|----------------------------|--------|

|   | Less Than Twelve Months |   |  Over Twelve Months |
|--------|-------------------------|--------|--------------------------|

|                        |             |        |             |        |
|-----------------------------|------------------|-------------|------------------|-------------|
|                        |  Gross      |        |  Gross      |        |
|                        |  Unrealized |  Fair  |  Unrealized |  Fair  |
| Securities Held-To-Maturity |  Losses     |  Value |  Losses     |  Value |

|   |   |   |   |   |                        (In Thousands) |   |
|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| Debt Securities                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Mortgage-Backed Securities                          |   | $      | 112    |   |   | $      | 3,816  |   |   | $      | -      |   |   | $ | - |   |
| Marketable Equity Securities                        |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | - |   |
|    Total Securities Held-to-Maturity |   | $      | 112    |   |   | $      | 3,816  |   |   | $      | -      |   |   | $ | - |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   |   |     June 30, 2010 |
|--------|--------|-----------------------------|
|   |  Less Than Twelve Months |   |  Over Twelve Months |
|--------|-------------------------------|--------|--------------------------|

|                          |             |        |             |        |
|-------------------------------|------------------|-------------|------------------|-------------|
|                          |  Gross      |        |  Gross      |        |
|                          |  Unrealized |  Fair  |  Unrealized |  Fair  |
| Securities Available-for-Sale |  Losses     |  Value |  Losses     |  Value |

|   |   |   |   |   |                   (In Thousands) |   |
|--------|--------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------|--------|

| Debt Securities                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Mortgage-Backed Securities                       |   | $      | -      |   |   | $      | -      |   |   | $      | 1      |   |   | $ | 89 |   |
| Marketable Equity                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities                                       |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | - |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Total Securities               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Available-for-Sale |   | $      | -      |   |   | $      | -      |   |   | $      | 1      |   |   | $ | 89 |   |

|   | The unrealized losses on the Company’s investment in mortgage-backed securities were caused by interest rate changes.  The contractual cash flows of these investments are guaranteed by agencies of the U.S. government.  Accordingly, it is expected that these securities would not be settled at a price less than the amortized cost of the Company’s investment.  Because the decline in market value is attributable to changes in interest rates and not credit quality and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2011. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At June 30, 2011, securities with a carrying value of $3.2 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $54.6 million were pledged to secure FHLB advances. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 3. | Loans Receivable |
|---------|------------------|

|                                      |                      |   | 2011           |   |   | 2010   |   |
|-------------------------------------------|---------------------------|--------|----------------|--------|--------|--------|--------|
|                                      |                      |   | (In Thousands) |   |
|                                      |                      |   |           |   |   |   |   |
| Loans Secured by Mortgages on Real Estate |                      |   |           |   |   |   |
| One-to-Four Family Residential            |                      | $      | 45,567         |   |   | $      | 36,257 |   |
| Commercial                                |                      |   | 32,763         |   |   |   | 15,422 |   |
| Multi-Family Residential                  |                      |   | 8,360          |   |   |   | 9,079  |   |
| Land                                      |                      |   | 11,254         |   |   |   | 8,442  |   |
| Construction                              |                      |   | 10,325         |   |   |   | 10,095 |   |
| Equity and Second Mortgage                |                      |   | 1,519          |   |   |   | 2,963  |   |
| Equity Lines of Credit                    |                      |   | 5,974          |   |   |   | 4,069  |   |
| Total Mortgage Loans                      |                      |   | 115,762        |   |   |   | 86,327 |   |
| Commercial Loans                          |                      |   | 10,237         |   |   |   | 7,152  |   |
| Consumer Loans                            |                      |   |           |   |   |   |   |   |
| Loans on Savings Accounts                 |                      |   | 328            |   |   |   | 285    |   |
| Automobile and Other Consumer Loans       |                      |   | 163            |   |   |   | 48     |   |
| Total Consumer and Other Loans            |                      |   | 491            |   |   |   | 333    |   |
| Total Loans                               |                      |   | 126,490        |   |   |   | 93,812 |   |
|                                      |                      |   |           |   |   |   |   |   |   |
| Less:                                     | Allowance for Loan Losses |   |           | (842   | )      |   |   | (489 | ) |
| Unamortized Loan Fees                     |                      |   | (277           | )      |   |   | (267   | ) |
| Net Loans Receivable                      |                      | $      | 125,371        |   |   | $      | 93,056 |   |

|                        |   | 2011           |   |   | 2010   |   |
|-----------------------------|--------|----------------|--------|--------|--------|--------|
|                        |   | (In Thousands) |   |
|                        |   |           |   |   |   |   |
| Balance - Beginning of Year |   | $              | 489    |   |   | $      | 466 |   |
| Provision for Loan Losses   |   |           | 353    |   |   |   | 36 |   |
| Loan Charge-Offs            |   |           | -      |   |   |   | (13 | ) |
|                        |   |           |   |   |   |   |   |   |
| Balance - End of Year       |   | $              | 842    |   |   | $      | 489 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Fixed rate loans receivable as of June 30, 2011, are scheduled to mature and adjustable rate loans are scheduled to re-price as follows (in thousands): |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                      |   | Under  |   |   | Over One |   |   | Over Five |   |   | Over   |   |   |   |   |
|--------|-------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                      |   | One    |   |   | to Five  |   |   | to Ten    |   |   | Ten    |   |   |   |   |
|   |                                                                                      |   | Year   |   |   | Years    |   |   | Years     |   |   | Years  |   |   | Total  |   |
|   | Loans Secured by One-to-Four                                                              |   |   |   |   |     |   |   |      |   |   |   |   |   |   |   |
|   |      Family Residential                                          |   |   |   |   |     |   |   |      |   |   |   |   |   |   |   |
|   |           Fixed Rate                    |   | $      | 1,100  |   |     | $      | 20,844 |      |   | $      | 1,725  |   |   | $      | 11,676 |   |   | $ | 35,345 |   |
|   |           Adjustable Rate               |   |   | 1,196  |   |     |   | 405    |      |   |   | 817    |   |   |   | 7,804  |   |   |   | 10,222 |   |
|   | Other Loans Secured by Real Estate                                                        |   |   |   |   |     |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
|   |           Fixed Rate                    |   |   | 17,967 |   |     |   | 45,293 |      |   |   | 864    |   |   |   | 6,071  |   |   |   | 70,195 |   |
|   | All Other Loans                                                                           |   |   | 5,247  |   |     |   | 5,422  |      |   |   | 47     |   |   |   | 12     |   |   |   | 10,728 |   |
|   |               Total |   | $      | 25,510 |   |     | $      | 71,964 |      |   | $      | 3,453  |   |   | $      | 25,563 |   |   | $ | 126,490 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Credit Quality Indicators as of June 30, 2011 |   |           |    |   |           |   |   |        |   |   |
|--------|-----------------------------------------------|--------|----------------|---------|--------|----------------|--------|--------|-------------|--------|--------|
|   |                                          |   | Pass           |    |   | SpecialMention |   |   | Substandard |   |   | Doubtful |   |   | Total |   |
|   |                                          |   | (In Thousands) |    |
|   | Real Estate Loans:                            |   |           |    |   |           |   |   |        |   |   |   |   |   |   |   |
|   |   One-to-Four Family Residential    |   | $              | 45,353  |   |           | $      | 100    |        |   | $      | 114 |   |   | $ | - |   |   | $ | 45,567 |   |
|   |   Commercial                        |   |           | 32,763  |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 32,763 |   |
|   |   Multi-Family Residential          |   |           | 8,360   |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 8,360 |   |
|   |   Land                              |   |           | 11,254  |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 11,254 |   |
|   |   Construction                      |   |           | 10,325  |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 10,325 |   |
|   |   Equity and Second Mortgage        |   |           | 1,519   |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 1,519 |   |
|   |   Equity Lines of Credit            |   |           | 5,974   |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 5,974 |   |
|   | Commercial Loans                              |   |           | 10,237  |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 10,237 |   |
|   | Consumer Loans                                |   |           | 491     |   |           |   | -      |        |   |   | - |   |   |   | - |   |   |   | 491 |   |
|   |      Total           |   | $              | 126,276 |   |           | $      | 100    |        |   | $      | 114 |   |   | $ | - |   |   | $ | 126,490 |   |

|                                       | 30-59Days Past Due                                                                                                                               | 60-89 Days Past Due                                                                                   | Greater Than 90 Days                                                             | Total Past Due                                                                                                                               | Current                                                         | Total Loans Receivable                                                                 | RecordedInvestment >90 Days and Accruing                                                                                  |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
|                                       | (In Thousands)                                                                                                                                   |
| Real Estate Loans :              |                                                                                                                                             |                                                                                                  |                                                                             |                                                                                                                                         |                                                            |                                                                                   |                                                                                                                         |
|   One-to-Four Family Residential |  $                      1,987 |  $               480       | $      114                                         | $                       2,581       | $        42,986              |  $             45,567 |  $                    99 |
|   Commercial                     |           -                                                                                    |            -                                   |              -  |             -                                                                    |       32,763                      |         32,763                                 |                  -                      |
|   Multi-Family Residential            |           -                                                                                    |            -                                   |              -  |             -                                                                    |         8,360           |           8,360                      |                  -                      |
|   Land                                | -                                                                                                                                                | -                                                                                                     | -                                                                                | -                                                                                                                                            | 11,254                                                          | 11,254                                                                                 | -                                                                                                                            |
|   Construction                        | -                                                                                                                                                | -                                                                                                     | -                                                                                | -                                                                                                                                            | 10,325                                                          | 10,325                                                                                 | -                                                                                                                            |
|   Equity and Second Mortgage          | -                                                                                                                                                | -                                                                                                     | -                                                                                | -                                                                                                                                            | 1,519                                                           | 1,519                                                                                  | -                                                                                                                            |
|   Equity Lines of Credit              | -                                                                                                                                                | -                                                                                                     | -                                                                                | -                                                                                                                                            | 5,974                                                           | 5,974                                                                                  | -                                                                                                                            |
|   Commercial Loans                    |           -                                                                                    |            -                                   |              -  |             -                                                                    |       10,237                      |         10,237                                 |                  -                      |
| Consumer Loans                             |           -                                                                                    |            -                                   |               - |              -                                                              |           491 |             491            |                  -                      |
|      Total        |  $                     1,987            |  $                480 |  $           114          |  $                       2,581 |  $      123,909                   |  $           126,490            |  $                    99 |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                       |   |   | Real Estate Loans       |   |   |   |              |   |   |   |         |   |   |   |   |   |
|----------------------------|--------|--------|-------------------------|--------|--------|--------|-------------------|--------|--------|--------|--------------|--------|--------|--------|--------|--------|
|                       |   |   |   Residential |   |   |   |   Commercial |   |   |   | Multi-Family |   |   |   | Land   |   |   |   | Construction |   |   |   | Other |   |   |   | Commercial Loans |   |   |   | Consumer Loans |   |   |   |  Total |   |
| Allowance for loan losses: |   |   |                    |   |   |   |              |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning Balances         |   | $      | 30                      |   |   | $      |  95          |   |   | $      |  70     |   |   | $      | 75     |   |   | $ |  74 |   |   | $ |  - |   |   | $ | 140 |   |   | $ | 5 |   |   | $ | 489 |   |
| Charge-Offs                |   |   | -                       |   |   |   | -                 |   |   |   | -            |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Recoveries                 |   |   | -                       |   |   |   | -                 |   |   |   | -            |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Current Provision          |   |   | 80                      |   |   |   | 30                |   |   |   | 70           |   |   |   | 75     |   |   |   | 56 |   |   |   | - |   |   |   | 35 |   |   |   | 7 |   |   |   | 353 |   |
| Ending Balances            |   | $      | 110                     |   |   | $      |  125         |   |   | $      |  140    |   |   | $      | 150    |   |   | $ |  130 |   |   | $ |  - |   |   | $ | 175 |   |   | $ | 12 |   |   | $ | 842 |   |
| Evaluated for Impairment:  |   |   |                    |   |   |   |              |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually               |   |   | -                       |   |   |   | -                 |   |   |   | -            |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Collectively               |   |   | 110                     |   |   |   | 125               |   |   |   | 140          |   |   |   | 150    |   |   |   | 130 |   |   |   | - |   |   |   | 175 |   |   |   | 12 |   |   |   | 842 |   |
| Loans Receivable:          |   |   |                    |   |   |   |              |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending Balances - Total    |   | $      | 45,567                  |   |   | $      |  32,763      |   |   | $      | 8,360        |   |   | $      | 11,254 |   |   | $ |  10,325 |   |   | $ | 7,493 |   |   | $ | 10,237 |   |   | $ | 491 |   |   | $ | 126,490 |   |
| Ending Balances:           |   |   |                    |   |   |   |              |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Evaluated for Impairment:  |   |   |                    |   |   |   |              |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Individually               |   |   | 15                      |   |   |   | -                 |   |   |   | -            |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15 |   |
| Collectively               |   | $      | 45,552                  |   |   | $      | 32,763            |   |   | $      | 8,360        |   |   | $      | 11,254 |   |   | $ |  10,325 |   |   | $ | 7,493 |   |   | $ | 10,237 |   |   | $ | 491 |   |   | $ | 126,475 |   |

|                                       | Unpaid Principal Balance                                                                                         | Recorded Investment With No Allowance                                                                                                          | Recorded Investment With Allowance                                                                                                                                                 | Total Recorded Investment                                                                                                                                                    | Related Allowance                                                                                                                             | Average Recorded Investment                                                                                                                          |
|--------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       | (In Thousands)                                                                                                   |
| Real Estate Loans -                        |                                                                                                             |
|   One-to-Four Family Residential |  $                 15       |  $                       15 |  $                              - |  $                            15 |  $                       - |  $                        15      |
| Real Estate Loans -                        |                                                                                                             |                                                                                                                                           |                                                                                                                                                                               |                                                                                                                                                                         |                                                                                                                                          |                                                                                                                                                 |
|   Commercial                     |            -                                              |                -                                                    |                 -                                                                                  |                 -                                                                            |              -                                                               |                -                                                          |
| Real Estate Loans - Other                  |            -                                              |                -                                                    |                 -                                                                                  |                 -                                                                            |              -                                                               |                -                                                          |
| Commercial Loans                           |            -                                              |                -                                                    |                 -                                                                                  |                 -                                                                            |              -                                                               |                -                                                          |
| Consumer Loans                             |            -                                              |                -                                                    |                 -                                                                                  |                 -                                                                            |              -                                                               |                -                                                          |
| Total                                      |  $                  15 |  $                       15 |  $                              - |  $                            15 |  $                       - |  $                        15 |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Loans Receivable on Nonaccrual Status as of June 30, 2011 |   |
|--------|-----------------------------------------------------------|--------|
|   |   (In Thousands)                                     |   |
|   | Real Estate Loans:                                        |   |   |   |
|   |    One-to-Four Family Residential          |   | $ | 15 |   |
|   |    Commercial                              |   |   | - |   |
|   |    Multi-Family Residential                |   |   | - |   |
|   |    Land                                    |   |   | - |   |
|   |    Construction                            |   |   | - |   |
|   |    Equity and Second Mortgage              |   |   | - |   |
|   |    Equity Lines of Credit                  |   |   | - |   |
|   | Commercial Loans                                          |   |   | - |   |
|   | Consumer Loans                                            |   |   | - |   |
|   | Total                                                     |   | $ | 15 |   |

|  Note 4. |  Accrued Interest Receivable |
|---------------|-----------------------------------|

|                             |   | 2011          |   |   | 2010   |   |
|----------------------------------|--------|---------------|--------|--------|--------|--------|
|                             |   | (In Thousnds) |   |
| Accrued Interest on:             |   |          |   |   |   |   |
| Mortgage Loans         |   | $             | 339    |   |   | $      | 214 |   |
| Other Loans                 |   |          | 123    |   |   |   | 109 |   |
| Investments                      |   |          | 189    |   |   |   | 2 |   |
| Mortgage-Backed Securities  |   |          | 150    |   |   |   | 235 |   |
|                             |   |          |   |   |   |   |   |   |
| Total        |   | $             | 801    |   |   | $      | 560 |   |

| Note 5. | Premises and Equipment |   |
|---------|------------------------|--------|

|                          |   | 2011          |                     |   | 2010   |   |
|-------------------------------|--------|---------------|--------------------------|--------|--------|--------|
|                          |   | (In Thousnds) |                     |
| Land                          |   | $             | 2,051                    |   |   | $      | 2,051 |   |
| Buildings                     |   |          |    2,140  |   |   |   | 1,224 |   |
| Investments                   |   |          |  919                |   |   |   | 791 |   |
|                          |   |          |                     |   |   |   |   |   |
|                          |   |          | 5,110                    |   |   |   | 4,066 |   |
| Accumulated Depreciation      |   |          | (1,173                   | )      |   |   |   (1,017 | ) |
|                          |   |          |                     |   |   |   |   |   |
| Total     |   | $             |     3,937 |   |   | $      |          3,049 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 6. | Deposits |
|---------|----------|

|                    |   |   |               |   |   |   |               |   |   |   |    |   |   |   |                   |   |   |   |         |   |   |   |          |   |
|-------------------------|--------|--------|--------------------|--------|--------|--------|--------------------|--------|--------|--------|---------|--------|--------|--------|------------------------|--------|--------|--------|--------------|--------|--------|--------|---------------|--------|
|                    |   |   | Rate at  |   |   |   | Rate at  |   |   |   | 2011    |   |   |   | 2010                   |   |
|                    |   |   | 6/30/2011     |   |   |   | 6/30/2010     |   |   |   | Amount  |   |   |   | Percent           |   |   |   | Amount  |   |   |   | Percent  |   |
|                    |   |   |               |   |   |   |               |   |   |   |    |   |   |   | (Dollars in Thousands) |   |   |   |         |   |
|                    |   |   |               |   |   |   |               |   |   |   |    |   |   |   |                   |   |   |   |         |   |   |   |          |   |
| Non-Interest Bearing    |   |   | 0.00               | %      |   |   | 0.00               | %      |   | $      | 14,827  |   |   |   | 9.65                   | %      |   | $      | 9,890        |   |   |   | 8.40          | %      |
| NOW Accounts            |   |   | 0.84               | %      |   |   | 0.12               | %      |   |   | 14,516  |   |   |   | 9.45                   |   |   |   | 8,240        |   |   |   | 7.00          |   |
| Money Market            |   |   | 0.96               | %      |   |   | 1.19               | %      |   |   | 31,245  |   |   |   | 20.34                  |   |   |   | 20,436       |   |   |   | 17.36         |   |
| Passbook Savings        |   |   | 0.52               | %      |   |   | 0.42               | %      |   |   | 7,363   |   |   |   | 4.79                   |   |   |   | 5,266        |   |   |   | 4.47          |   |
|                    |   |   |               |   |   |   |               |   |   |   |    |   |   |   |                   |   |   |   |         |   |   |   |          |   |
|                    |   |   |               |   |   |   |               |   |   |   | 67,951  |   |   |   | 44.23                  |   |   |   | 43,832       |   |   |   | 37.23         |   |
| Certificates of Deposit |   |   | 2.34               | %      |   |   | 2.66               | %      |   |   | 85,665  |   |   |   | 55.77                  |   |   |   | 73,890       |   |   |   | 62.77         |   |
|                    |   |   |               |   |   |   |               |   |   |   |    |   |   |   |                   |   |   |   |         |   |   |   |          |   |
| Total Deposits          |   |   |               |   |   |   |               |   |   | $      | 153,616 |   |   |   | 100.00                 | %      |   | $      | 117,722      |   |   |   | 100.00        | %      |

|   | The composition of certificates of deposit accounts by interest rate is as follows: |
|--------|-------------------------------------------------------------------------------------|

|           |   | 2011                   |   |   | 2010    |   |
|----------------|--------|------------------------|--------|--------|---------|--------|
|           |   | Amount                 |   |   | Percent |   |   | Amount |   |   | Percent |   |
|           |   | (Dollars in Thousands) |   |
| 0.00% to 0.99% |   | $                      | 4,762  |   |    |   | 5.56 | % |   | $ | 12 |   |   |   | 0.02 | % |
| 1.00% to 1.99% |   |                   | 24,946 |   |    |   | 29.12 |   |   |   | 30,309 |   |   |   | 41.02 |   |
| 2.00% to 2.99% |   |                   | 29,869 |   |    |   | 34.87 |   |   |   | 16,734 |   |   |   | 22.65 |   |
| 3.00% to 3.99% |   |                   | 20,192 |   |    |   | 23.57 |   |   |   | 17,497 |   |   |   | 23.68 |   |
| 4.00% to 4.99% |   |                   | 1,026  |   |    |   | 1.20 |   |   |   | 7,865 |   |   |   | 10.64 |   |
| 5.00% to 5.99% |   |                   | 4,870  |   |    |   | 5.68 |   |   |   | 1,473 |   |   |   | 1.99 |   |
|           |   |                   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Total Deposits |   | $                      | 85,665 |   |    |   | 100.00 | % |   | $ | 73,890 |   |   |   | 100.00 | % |

|   | Maturities of certificates of deposit accounts at June 30, 2011, are scheduled as follows: |
|--------|--------------------------------------------------------------------------------------------|

|                          |   |   |   |   |    |   |   | Weighted |   |
|-------------------------------|--------|--------|--------|--------|---------|--------|--------|----------|--------|
| Year Ending                   |   |   |   |   |    |   |   | Average  |   |
| June 30,                      |   | Amount |   |   | Percent |   |   | Rate     |   |
|   (Dollars in Thousands) |   |
| 2012                          |   | $      | 39,710 |   |    |   | 46.35  | %        |   |   | 1.8 | % |
| 2013                          |   |   | 15,776 |   |    |   | 18.42  |     |   |   | 2.4 | % |
| 2014                          |   |   | 10,384 |   |    |   | 12.12  |     |   |   | 2.8 | % |
| 2015                          |   |   | 10,887 |   |    |   | 12.71  |     |   |   | 3.2 | % |
| 2016                          |   |   | 8,908  |   |    |   | 10.40  |     |   |   | 2.9 | % |
| Total                         |   | $      | 85,665 |   |    |   | 100.00 | %        |   |   |   |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                          |   | 2011          |   |   | 2010   |   |
|-------------------------------|--------|---------------|--------|--------|--------|--------|
|                          |   | (In Thousnds) |   |
|                          |   |          |   |   |   |   |   |   |
| NOW and Money Market          |   | $             | 325    |   |   | $      | 205 |   |
| Passbook Savings              |   |          | 25     |   |   |   | 23 |   |
| Certificates of Deposits      |   |          | 1,929  |   |   |   |    2,010 |   |
|                          |   |          |   |   |   |   |   |   |
| Total     |   | $             | 2,279  |   |   | $      | 2,238 |   |

|   | Advances at June 30, 2011 and 2010, consisted of the following: |
|--------|-----------------------------------------------------------------|

|           |   |   |  Advance Total |       |
|----------------|--------|--------|---------------------|------------|
| Contract Rate  |   |   |                | 2011  |   |   |   | 2010  |   |
|           |   |   |                |       |   |
| 0.00% to 0.99% |   |   | $                   | 5,000      |   |   | $ | 1,500 |   |
| 1.00% to 1.99% |   |   |                | 4,000      |   |   |   | 4,000 |   |
| 2.00% to 2.99% |   |   |                | 2,909      |   |   |   | 4,203 |   |
| 3.00% to 3.99  |   |   |                | 6,960      |   |   |   | 9,763 |   |
| 4,00% to 4.99% |   |   |                | 6,298      |   |   |   | 7,910 |   |
| 5.00% to 5.99% |   |   |                | 1,724      |   |   |   | 4,131 |   |
|           |   |   |                |       |   |   |   |   |   |
| Total          |   |   | $                   | 26,891     |   |   | $ | 31,507 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Maturities of advances at June 30, 2011 are as follows (in thousands): |
|--------|------------------------------------------------------------------------|

| Year Ending |   |   |   |
|-------------|--------|--------|--------|
| June 30,    |   | Amount |   |
| 2012        |   | $      | 16,422 |   |
| 2013        |   |   | 5,907  |   |
| 2014        |   |   | 1,915  |   |
| 2015        |   |   | 236    |   |
| 2016        |   |   | 247    |   |
| Thereafter  |   |   | 2,164  |   |
|        |   |   |   |   |
| Total       |   | $      | 26,891 |   |

| Note 8. | Commitments |
|---------|-------------|

| Year Ending |   |   |   |
|-------------|--------|--------|--------|
| June 30,    |   | Amount |   |
| 2012        |   | $      | 128    |   |
| 2013        |   |   | 73     |   |
| 2014        |   |   | 76     |   |
| 2015        |   |   | 76     |   |
| 2016        |   |   | 72     |   |
| Thereafter  |   |   | 63     |   |
|        |   |   |   |   |
| Total       |   | $      | 488    |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 8. | Commitments (Continued) |
|---------|-------------------------|

| Year Ending |   |   |                             |
|-------------|--------|--------|----------------------------------|
| June 30,    |   | Amount |                             |
| 2012        |   | $      |      48 |   |
| 2013        |   |   | 48                               |   |
| 2014        |   |   | 48                               |   |
| 2015        |   |   | 28                               |   |
|        |   |   |                             |   |
| Total       |   | $      | 172                              |   |

| Year Ending |   |   |                              |
|-------------|--------|--------|-----------------------------------|
| June 30,    |   | Amount |                              |
| 2012        |   | $      |      291 |   |
| 2013        |   |   | 155                               |   |
|        |   |   |                              |   |
| Total       |   | $      | 446                               |   |

|                          |   | 2011          |   |   | 2010   |   |
|-------------------------------|--------|---------------|--------|--------|--------|--------|
|                          |   | (In Thousnds) |   |
|                          |   |          |   |   |   |   |   |   |
| Current                       |   | $             | 1,078  |   |   | $      | 700 |   |
| Deferred                      |   |          | (140   | )      |   |   |    (27 | )  |
|                          |   |          |   |   |   |   |   |   |
| Total     |   | $             | 938    |   |   | $      | 673 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 9. | Income Taxes (Continued) |
|---------|--------------------------|

|                                                     |   | 2011          |   |    | 2010   |   |
|----------------------------------------------------------|--------|---------------|--------|---------|--------|--------|
|                                                     |   | (In Thousnds) |   |
|                                                     |   |          |   |    |   |   |   |   |
| Computed at Expected Statutory Rate                      |   | $             | 978    |    |   | $      | 457 |   |
| Capital Gains and Losses                                 |   |          | (30    | )  |   |   | 214 |   |
| Other                                                    |   |          | -      |    |   |   | 2 |   |
| Non-Taxable Income                                       |   |          | (10    | )  |   |   |    - |   |
|                                                     |   |          |   |    |   |   |   |   |
| Provision for Income Tax Expense     |   | $             | 938    |    |   | $      | 673 |   |

|   | At June 30, 2011 and 2010, temporary differences between the financial statement carrying amount and tax bases of assets that gave rise to deferred tax recognition were related to the effect of loan bad debt deduction differences for tax and book purposes, deferred stock option compensation and non-deductible capital losses.  The deferred tax expense or benefit related to securities available-for-sale has no effect on the Bank's income tax provision since it is charged or credited to the Bank’s other comprehensive income or loss equity component.  A valuation allowance has been established to eliminate the deferred tax benefit of capital losses due to the uncertainty as to whether the tax benefits would be realized in future periods. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   |                                       |                                                                                                                                                       |                                                                                                                                       | 2011                                                                                                                                                       |                                                                                                                              | 2010                                                                                                             |   |
|--------------------------|--------|--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------|
|                     |   |                                       |                                                                                                                                                       |                                                                                                                                       | (In Thousands)                                                                                                                                             |                                                                                                                              |
| Deferred Tax Assets      |   |                                       |                                                                                                                                                       |
|                     |   | Stock Option Compensation                  |  $                       105            |                                                                                                                                       |   $               100                                                      |                                                                                                                              |
|                     |   | Loans Receivable - Bad Debt Loss Allowance |                           180 |                                                                                                                                       |                      60                                     |                                                                                                                              |
|                     |   | Capital Losses                             |                           154 |                                                                                                                                       |                    185                                                |                                                                                                                              |
|                     |   |                                       |                                                                                                                                                       |                                                                                                                                       |                           439 |                                                                                                                              |                    345 |   |
|                     |   | Valuation Allowance                        |                         (139)      |                                                                                                                                       |                  (185)                                                     |                                                                                                                              |
|                     |   |                                       |                                                                                                                                                       | Net Deferred Tax Assets                                                                                                                    |                          300       |                                                                                                                              |                   160       |   |
|                     |   |                                       |                                                                                                                                                       |                                                                                                                                       |                                                                                                                                                       |                                                                                                                              |                                                                                                             |   |
| Deferred Tax Liabilities |   |                                       |                                                                                                                                                       |                                                                                                                                       |                                                                                                                                                       |
|                     |   | Market Value Adjustment to                 |                                                                                                                                                       |                                                                                                                                       |                                                                                                                                                       |                                                                                                                              |
|                     |   |                                       | Available-for-Sale Securities                                                                                                                              |                        (735) |                       (1,081)                          |                                                                                                                              |
|                     |   |                                       |                                                                                                                                                       |                                                                                                                                       |                                                                                                                                                       |                                                                                                                              |                                                                                                             |   |
|                     |   |                                       |                                                                                                                                                       | Net Deferred Tax Liabilities                                                                                                               |  $                   (435)                                       |            $            (921) |                                                                                                             |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 10. | Employee Benefit Plans |
|----------|------------------------|

| Note 11. | Employee Stock Ownership Plan |
|----------|-------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 11. | Employee Stock Ownership Plan (Continued) |
|----------|-------------------------------------------|

|   | As part of the conversion described in Note 1, the ESOP purchased 116,713 shares of the Company, which represented 6.0% of the shares sold in the conversion.  This purchase was facilitated by a loan from the Company to the ESOP in the amount of $1.2 million.  The corresponding note is being repaid in 80 quarterly debt service payments of $20,000 on the last business day of each quarter, beginning March 31, 2011, at the rate of 3.2%. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As compensation expense is incurred, the Unearned ESOP Shares account is reduced based on the original cost of the stock.  The difference between the cost and the average market price of shares released for allocation is applied to Additional Paid-In Capital.  ESOP compensation expense for the years ended June 30, 2011 and 2010, was $101,000 and $47,000, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The ESOP shares as of June 30, 2011, are as follows: |
|--------|------------------------------------------------------|

|                                                |   | 2011   |    |   | 2010   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Allocated Shares                                    |   |   | 34,166  |   |   |   | 28,472 |   |
| Shares Released for Allocation                      |   |   | 5,765   |   |   |   | 2,847 |   |
| Unreleased Shares                                   |   |   | 190,669 |   |   |   | 82,568 |   |
|                                                |   |   |    |   |   |   |   |   |
| Total ESOP Shares                                   |   |   | 230,600 |   |   |   | 113,887 |   |
|                                                |   |   |    |   |   |   |   |   |
| Fair Value of Unreleased Shares (In Thousands)      |   | $      | 2,492   |   |   | $      | 661 |   |
|                                                |   |   |    |   |   |   |   |   |
| Stock Price at June 30, 2011 and 2010, Respectively |   | $      | 13.07   |   |   | $      | 8.00 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan and Trust Agreement (the Recognition Plan) as an incentive to retain personnel of experience and ability in key positions.  As a result of the second step conversion, the Recognition Plan became a stock benefit plan of the Company, and the Mid-Tier Company’s common stock was exchanged for stock of the Company.  The aggregate number of shares of the Company’s common stock subject to award under the Recognition Plan totaled 63,547 (as adjusted for the conversion described in Note 1).  As shares were acquired for the Recognition Plan, the purchase price of these shares was recorded as a contra equity account.  As the shares are distributed, the contra equity account is reduced. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Recognition Plan shares are earned by recipients at a rate of 20% of the aggregate number of shares covered by the Recognition Plan award over five years.  If the employment of an employee or service as a non-employee director is terminated prior to the fifth anniversary of the date of grant of Recognition Plan share award for any reason other than the recipient’s death, disability, or following a change in control of the Company, the recipient shall forfeit the right to any shares subject to the awards that have not been earned. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The cost associated with the Recognition Plan is based on a share price of $10.82 (as adjusted), which represents the market price of the Company’s stock on the date on which the Recognition Plan shares were granted.  The cost is being recognized over five years.  Compensation expense pertaining to the Recognition Plan was $19,000 and $118,000, for the years ended June 30, 2011 and 2010, respectively.  The number of shares has been adjusted for the exchange ratio as a result of the second step conversion completed in December 2010. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   |             |   |   |           |   |   |   |   |   |    |   |
|-----------------------------|--------|------------------|--------|--------|----------------|--------|--------|--------|--------|--------|---------|--------|
|                        |   | Unawarded Shares |   |   | Awarded Shares |   |
|                        |   | 2011             |   |   | 2010           |   |   | 2011   |   |   | 2010    |   |
| Balance - Beginning of Year |   |             | 2,808  |   |           |   | 2,086  |   |   |   | 10,759  |   |   |   | 22,970 |   |
| Granted                     |   |             | (2,808 | )      |           |   | -      |   |   |   | 2,808   |   |   |   | - |   |
| Forfeited                   |   |             | -      |   |           |   | 722    |   |   |   | -       |   |   |   | (722 | ) |
| Earned and Issued           |   |             | -      |   |           |   | -      |   |   |   | (10,759 | )      |   |   | (11,489 | ) |
|                        |   |             |   |   |           |   |   |   |   |   |    |   |   |   |   |   |
| Balance - End of Year       |   |             | -      |   |           |   | 2,808  |   |   |   | 2,808   |   |   |   | 10,759 |   |

|   | On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan (the Option Plan) for the benefit of directors, officers, and other employees.  The aggregate number of shares of common stock reserved for issuance under the Option Plan totaled 158,868 (as adjusted for the conversion described in Note 1).  Both incentive stock options and non-qualified stock options may be granted under the plan. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                                 |                                                                      |   |                    |   | Weighted                           |   |                                                                       |
|--------------------------------------|---------------------------------------------------------------------------|--------|-------------------------|--------|------------------------------------|--------|----------------------------------------------------------------------------|
|                                 |                                                                      |   | Weighted                |   | Average                            |   |                                                                       |
|                                 |                                                                      |   | Average                 |   | Remaining                          |   | Aggregate                                                                  |
|                                 | Number of                                                                 |   | Exercise                |   | Contract                           |   | Intrinsic                                                                  |
|                                 | Shares                                                                    |   | Price                   |   | Term                               |   | Value                                                                      |
| Outstanding at June 30, 2010         | 142,274                                                                   |   |  $10.82            |   |                               |   |                                                                       |
| Granted                              |   21,616                                                        |   |    10.93 |   |                               |   |                                                                       |
| Exercised                            |             - |   |                    |   |                               |   |                                                                       |
| Forfeited                            |    (5,022)                                                 |   |    10.82 |   |                               |   |                                                                       |
| Outstanding at June 30, 2011         | 158,868                                                                   |   |  $10.83            |   |      4.82 |   |  $356,000                                                             |
|                                 |                                                                      |   |                    |   |                               |   |                                                                       |
| Options Exercisable at June 30, 2011 | 135,131                                                                   |   |  $10.82            |   |      4.29 |   |  $303,000                                                             |
|                                 |                                                                      |   |                    |   |                               |   |                                                                       |
| Outstanding at June 30, 2009         | 144,060                                                                   |   |  $10.82            |   |                               |   |                                                                       |
| Granted                              |             - |   |                    |   |                               |   |                                                                       |
| Exercised                            |             - |   |                    |   |                               |   |                                                                       |
| Forfeited                            |    (1,786)                                                 |   |    10.82 |   |                               |   |                                                                       |
| Outstanding at June 30, 2010         | 142,274                                                                   |   |  $10.82            |   |      5.13 |   |  $           - |
|                                 |                                                                      |   |                    |   |                               |   |                                                                       |
| Options Exercisable at June 30, 2010 | 115,248                                                                   |   |  $10.82            |   |      5.13 |   |  $         -             |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Dividend Yield                                                                                            2.0% |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Expected Term                                                                                      10 Years |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Risk-Free Interest Rate                                                                            4.13% |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Expected Life                                                                                        10 Years |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Expected Volatility                                                                                   8.59% |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       |   |      |    |   | Weighted |   |
|----------------------------|--------|-----------|---------|--------|----------|--------|
|                       |   |      |    |   | Average  |   |
|                       |   | Number of |    |   | Exercise |   |
|                       |   | Shares    |    |   | Price    |   |
| Nonvested at June 30, 2010 |   |      | 27,027  |   |     | $      | 10.82 |   |
| Granted                    |   |      | 21,616  |   |     |   | 10.93 |   |
| Vested                     |   |      | (19,885 | )      |     |   | 10.82 |   |
| Forfeited                  |   |      | (5,022  | )      |     |   | 10.82 |   |
|                       |   |      |    |   |     |   |   |   |
| Nonvested at June 30, 2011 |   |      | 23,736  |   |     | $      | 10.92 |   |

|   | Credit Related Financial Instruments |
|--------|--------------------------------------|

|   | The Bank is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments consist primarily of commitments to extend credit.  Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | Credit Related Financial Instruments (Continued) |
|--------|--------------------------------------------------|

|                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |        |     Contract Amount |
|--------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|------------------------------------|
|                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2011                                                                                                                                                                                                                                                                                                                                                                                                                  |   2010 |
|                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      (In Thousands)                                                                                                                                                                                                                                                                               |
|                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Commitments to Grant Loans                 |   |    $      18,931                                $         14,226                                                                                                                                                                                                                       |
| Unfunded Commitments Under Lines of Credit |   |                               7,702                                             5,159                                                                                         |
|                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    $      26,633                                $         19,385 |
|                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Fixed Rate Loans (4.000% - 6.250%)         |   |                    $      26,633                                $         19,385                                                                                                                       |
| Variable Rate Loans                        |   |                                       -                                                     - |
|                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                    $      26,633                                $         19,385           |

|   | No material gains or losses are anticipated as a result of these transactions. |
|--------|--------------------------------------------------------------------------------|

|   | The Company periodically maintains cash balances in financial institutions that are in excess of insured amounts.  The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A substantial portion of the Bank’s lending activity is with customers located within a 100 mile radius of the Shreveport, Louisiana metropolitan area, which includes areas of northwest Louisiana, northeast Texas and southwest Arkansas.  Although concentrated within the region, the Bank has a diversified loan portfolio, which should preclude the Bank from being dependent upon the well being of any particular economic sector to ensure collectability of any significant portion of its debtors’ loan contracts. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | The Bank has purchased, with recourse from the seller, a significant number of loans from third-party mortgage originators.  These loans are serviced by these entities.  At June 30, 2011 and 2010, the balance of the loans outstanding being serviced by these entities was $8.8 million and $8.9 million, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Interest Rate Floors and Caps |
|--------|-------------------------------|

|   | The Bank writes interest rate floors and caps into its variable rate mortgage loan contracts and loan servicing agreements in an attempt to manage its interest rate exposure.  Such floors and caps enable customers to transfer, modify, or reduce their interest rate risk, which, in turn, creates an off-balance sheet market risk to the Bank.  At June 30, 2011, the Bank's loan portfolio contained approximately $8.9 million of loans in which the loan contracts or servicing agreements possessed interest rate floors and caps.  Of this amount, $8.8 million consisted of purchased loans, which were originated by third-party mortgage originators. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 15. | Related Party Events |
|----------|----------------------|

|                                          |   | 2011          |   |   | 2010   |   |
|-----------------------------------------------|--------|---------------|--------|--------|--------|--------|
|                                          |   | (In Thousnds) |   |
|                                          |   |          |   |   |   |   |   |   |
| Balance - Beginning of Year                   |   | $             | 1,492  |   |   | $      | 1,621 |   |
| Additions                                     |   |          | 974    |   |   |   | 73 |   |
|  Principal Payments                      |   |          | (756   | )      |   |   |  (202 | )  |
|                                          |   |          |   |   |   |   |   |   |
| Balance - End of Year     |   | $             | 1,710  |   |   | $      | 1,492 |   |

|   | Deposits from related parties held by the Bank at June 30, 2011 and 2010, amounted to $1.8 million and $1.6 million, respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 16. | Regulatory Matters |
|----------|--------------------|

|   | As of June 30, 2011, the most recent notification from the Office of Thrift Supervision, the Bank’s predecessor regulator to the OCC, categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, the Bank must maintain minimum capital ratios, which are different than those required to meet OCC capital adequacy requirements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |                     |      |   |                     |   |                   |   |                                                                           |    Required for Capital |
|---------------|--------------------------|-----------|--------|--------------------------|--------|------------------------|--------|--------------------------------------------------------------------------------|----------------------------------------|
|          |                     |      |   |                     |   | Actual                 |   |      Adequacy Purposes                                |
|          |                     |      |   |                     |   | Amount                 |   | Ratio                                                                          |                                   | Amount |   |   Ratio |
|          |                     |      |   |                     |   | (Dollars in Thousands) |
| June 30, 2011 |                     |      |   |                     |   |                   |   |                                                                           |                                   |
|          | Core Capital             |  (1) |   |  $40,595            |   | 18.18%                 |   |  $          6,699       |                                   | 3.00% |
|          | Tangible Capital         |  (1) |   |    40,595 |   | 18.18%                 |   |              3,350 |                                   | 1.50% |
|          | Total Risk-Based Capital |  (2) |   |    41,187 |   | 35.17%                 |   |              9,368 |                                   | 8.00% |
|          |                     |      |   |                     |   |                   |   |                                                                           |                                   |   |   |   |
| June 30, 2010 |                     |      |   |                     |   |                   |   |                                                                           |                                   |
|          | Core Capital             |  (1) |   |  $29,989            |   | 16.47%                 |   |  $          5,462       |                                   | 3.00% |
|          | Tangible Capital         |  (1) |   |    29,989 |   | 16.47%                 |   |             2,731  |                                   | 1.50% |
|          | Total Risk-Based Capital |  (2) |   |    30,478 |   | 33.67%                 |   |             7,241  |                                   | 8.00% |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 16. | Regulatory Matters (Continued) |
|----------|--------------------------------|

|                                                 |                      |      |   |                     |   |                   |   |                                                                           |   | Required to be |
|------------------------------------------------------|---------------------------|-----------|--------|--------------------------|--------|------------------------|--------|--------------------------------------------------------------------------------|--------|----------------|
|                                                 |                      |      |   |                     |   | Actual                 |   | Well Capitalized                                                               |
|                                                 |                      |      |   |                     |   | Amount                 |   | Ratio                                                                          |   | Amount         |   | Ratio |
|                                                 |                      |      |   |                     |   | (Dollars in Thousands) |
| June 30, 2011                                        |                      |      |   |                     |   |                   |   |                                                                           |   |
|                                                 | Tier 1 Leverage Capital   |  (1) |   |  $40,595            |   | 18.18%                 |   |  $        11,166                  |   | 5.00%          |
|                                                 | Tier 1 Risk-Based Capital |  (2) |   |    40,595 |   | 34.67%                 |   |              7,026 |   | 6.00%          |
|                                                 | Total Risk-Based Capital  |  (2) |   |    41,187 |   | 35.17%                 |   |            11,097       |   | 10.00%         |
|                                                 |                      |      |   |                     |   |                   |   |                                                                           |   |           |   |   |
| June 30, 2010                                        |                      |      |   |                     |   |                   |   |                                                                           |   |
|                                                 | Tier 1 Leverage Capital   |  (1) |   |  $29,989            |   | 16.47%                 |   |  $          9,103       |   | 5.00%          |
|                                                 | Tier 1 Risk-Based Capital |  (2) |   |    29,989 |   | 33.13%                 |   |              5,431 |   | 6.00%          |
|                                                 | Total Risk-Based Capital  |  (2) |   |    30,478 |   | 33.67%                 |   |              9,051 |   | 10.00%         |
| (1) Amounts and Ratios to Adjusted Total Assets      |                      |      |   |                     |   |                   |   |
| (2) Amounts and Ratios to Total Risk-Weighted Assets |                      |      |   |                     |   |                   |

|                                    |   |                   |   |   |              |   |    | Minimum for Capital |   |
|-----------------------------------------|--------|------------------------|--------|--------|-------------------|--------|---------|---------------------|--------|
|                                    |   | Actual                 |   |   | Adequacy Purposes |   |
| June 30, 2011                           |   | Ratio                  |   |   | Amount            |   |    | Ratio               |   |   | Amount |   |
|                                    |   | (Dollars in Thousands) |   |
|                                    |   |                   |   |   |              |   |    |                |   |   |   |   |
| Total Equity, and Ratio to Total Assets |   |                   | 18.67  | %      |              | $      | 42,115  |                |   |   |   |   |   |   |
| Investments in and Advances to          |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |
| Nonincludable Subsidiaries              |   |                   |   |   |              |   | (121    | )                   |   |   |   |   |   |   |
| Unrealized Gains on                     |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |
| Securities Available-for-Sale           |   |                   |   |   |              |   | (1,399  | )                   |   |   |   |   |   |   |
| Tangible Capital, and Ratio             |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |
| to Adjusted Total Assets                |   |                   | 18.18  | %      |              | $      | 40,595  |                |   |   | 1.5 | % |   | $ | 3,350 |   |
| Tier 1 (Core) Capital,                  |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |   |   |
| and Ratio to Adjusted Total Assets      |   |                   | 18.18  | %      |              | $      | 40,595  |                |   |   | 3.0 | % |   | $ | 6,699 |   |
| Tier 1 (Core) Capital,                  |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |   |   |
| and Ratio to Risk-Weighted Assets       |   |                   | 34.67  | %      |              | $      | 40,595  |                |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses               |   |                   |   |   |              |   | 842     |                |   |   |   |   |   |   |   |   |
| Equity Investment                       |   |                   |   |   |              |   | (250    | )                   |   |   |   |   |   |   |   |   |
| Total Risk-Based Capital, and           |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |   |   |
| Ratio to Risk-Weighted Assets           |   |                   | 35.17  | %      |              | $      | 41,187  |                |   |   | 8.0 | % |   | $ | 9,368 |   |
| Total Assets                            |   |                   |   |   |              | $      | 225,555 |                |   |   |   |   |   |   |   |   |
| Adjusted Total Assets                   |   |                   |   |   |              | $      | 223,314 |                |   |   |   |   |   |   |   |   |
| Risk-Weighted Assets                    |   |                   |   |   |              | $      | 117,097 |                |   |   |   |   |   |   |   |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                                    |   |                   |   |   |              |   |    | Minimum for Capital |   |
|-----------------------------------------|--------|------------------------|--------|--------|-------------------|--------|---------|---------------------|--------|
|                                    |   | Actual                 |   |   | Adequacy Purposes |   |
| June 30, 2010                           |   | Ratio                  |   |   | Amount            |   |    | Ratio               |   |   | Amount |   |
|                                    |   | (Dollars in Thousands) |   |
|                                    |   |                   |   |   |              |   |    |                |   |   |   |   |
| Total Equity, and Ratio to Total Assets |   |                   | 17.38  | %      |              | $      | 32,206  |                |   |   |   |   |   |   |
| Investments in and Advances to          |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |
| Nonincludable Subsidiaries              |   |                   |   |   |              |   | (121    | )                   |   |   |   |   |   |   |
| Unrealized Gains on                     |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |
| Securities Available-for-Sale           |   |                   |   |   |              |   | (2,096  | )                   |   |   |   |   |   |   |
| Tangible Capital, and Ratio             |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |
| to Adjusted Total Assets                |   |                   | 16.47  | %      |              | $      | 29,989  |                |   |   | 1.5 | % |   | $ | 2,731 |   |
| Tier 1 (Core) Capital,                  |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |   |   |
| and Ratio to Adjusted Total Assets      |   |                   | 16.47  | %      |              | $      | 29,989  |                |   |   | 3.0 | % |   | $ | 5,462 |   |
| Tier 1 (Core) Capital,                  |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |   |   |
| and Ratio to Risk-Weighted Assets       |   |                   | 33.13  | %      |              | $      | 29,989  |                |   |   |   |   |   |   |   |   |
| Allowance for Loan Losses               |   |                   |   |   |              |   | 489     |                |   |   |   |   |   |   |   |   |
| Equity Investment                       |   |                   |   |   |              |   | -       |                |   |   |   |   |   |   |   |   |
|                                    |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |   |   |
| Total Risk-Based Capital, and           |   |                   |   |   |              |   |    |                |   |   |   |   |   |   |   |   |
| Ratio to Risk-Weighted Assets           |   |                   | 33.67  | %      |              | $      | 30,478  |                |   |   | 8.0 | % |   | $ | 7,241 |   |
| Total Assets                            |   |                   |   |   |              | $      | 185,350 |                |   |   |   |   |   |   |   |   |
| Adjusted Total Assets                   |   |                   |   |   |              | $      | 182,053 |                |   |   |   |   |   |   |   |   |
| Risk-Weighted Assets                    |   |                   |   |   |              | $      | 90,514  |                |   |   |   |   |   |   |   |   |

| Note 17. | Restrictions on Dividends |
|----------|---------------------------|

|   | Federal banking regulations place certain restrictions on dividends paid by the Bank to the Company.  The total amount of dividends which may be paid is generally limited to the net income of the Bank for the year to date, plus the retained net income for the preceding two years. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 18. | Fair Value of Financial Instruments |
|----------|-------------------------------------|

|   | The following disclosure is made in accordance with the requirements of ASC 825, Financial Instruments.  Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash.  In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.  The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment.  Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   Note 18. |  Fair Value of Financial Instruments (Continued) |
|-----------------|-------------------------------------------------------|

|   | The following methods and assumptions were used by the Bank in estimating fair values of financial instruments: |
|--------|-----------------------------------------------------------------------------------------------------------------|

|   | Cash and Cash Equivalents |
|--------|---------------------------|

|   | The carrying amount approximates the fair value of cash and cash equivalents. |
|--------|-------------------------------------------------------------------------------|

|   | Securities to be Held-to-Maturity and Available-for-Sale |
|--------|----------------------------------------------------------|

|   | Mortgage Loans Held-for-Sale |
|--------|------------------------------|

|   | Loans Receivable |
|--------|------------------|

|   | For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value.  Fair values for other loans are estimated using the discounted value of expected future cash flows.  Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality.  The carrying amount of accrued interest receivable approximates its fair value. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Deposit Liabilities |
|--------|---------------------|

|   | The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts.  Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows.  The discount rate is estimated using the rates currently offered for deposits of similar maturities. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Advances from Federal Home Loan Bank |
|--------|--------------------------------------|

|   | The carrying amount of short-term borrowings approximates their fair value.  The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Off-Balance Sheet Credit-Related Instruments |
|--------|----------------------------------------------|

|   | Fair values for outstanding mortgage loan commitments to lend are based on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 18.                  Fair Value of Financial Instruments (Continued) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Off-Balance Sheet Credit-Related Instruments (Continued) |
|--------|----------------------------------------------------------|

|                    |                              | 2011                                                                                           |   | 2010                                                                                                 |
|-------------------------|-----------------------------------|------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|
|                    |                              | Carrying                                                                                       |   | Estimated                                                                                            |   | Carrying |   | Estimated |
|                    |                              | Value                                                                                          |   | Fair Value                                                                                           |   | Value |   | Fair Value |
|                    |                              | (In Thousands)                                                                                 |   | (In Thousands)                                                                                       |
| Financial Assets        |                              |                                                                                           |   |                                                                                                 |   |   |   |
|                    | Cash and Cash Equivalents         |  $        9,599                                   |   |  $         9,599                                   |   |  $          8,837 |   |  $          8,837 |
|                    | Securities Available-for-Sale     |          75,039                                   |   |           75,039                                   |   |            63,688 |   |            63,688 |
|                    | Securities to be Held-to-Maturity |            5,725                        |   |             5,638                        |   |              2,138 |   |              2,163 |
|                    | Loans Held-for-Sale               |            6,653                        |   |             6,653                        |   |            13,403 |   |            13,403 |
|                    | Loans Receivable                  |           125,371                                 |   |            138,168                                 |   |            93,056 |   |          109,322 |
|                    |                              |                                                                                           |   |                                                                                                 |   |   |   |   |
| Financial Liabilities   |                              |                                                                                           |   |                                                                                                 |   |   |   |
|                    | Deposits                          |          153,616                                       |   |           157,840                                       |   |          117,722 |   |          120,460 |
|                    | Advances from FHLB                |            26,891                       |   |             27,826                            |   |            31,507 |   |            33,175 |
|                    |                              |                                                                                           |   |                                                                                                 |   |   |   |   |
| Off-Balance Sheet Items |                              |                                                                                           |   |                                                                                                 |   |   |   |
|                    | Mortgage Loan Commitments         |                 189 |   |                  189 |   |                142 |   |                142 |

| §   | Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| §   | Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Expands disclosures about instrument that are measured at fair value. |
|--------------------|-----------------------------------------------------------------------|

| §   | Level 1 - Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Level 2 - Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Level 3 - Fair value is based upon inputs that are unobservable for the asset or liability.  These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  These inputs are developed based on the best information available in the circumstances, which include the Company’s own data.  The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|                    |   | Fair Value Measurements Using:                                 |   |   |                                         |   |
|-------------------------|--------|----------------------------------------------------------------|--------|--------|----------------------------------------------|--------|
|                    |   |                                                           |   |   |                                         |   |   |   |   |
|                    |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Total |   |
| June 30, 2011           |   | (In Thousands)                                                 |   |
| Available-for-Sale      |   |                                                           |   |   |                                         |   |   |   |   |
| Debt Securities         |   |                                                           |   |   |                                         |   |   |   |   |
| FHLMC                   |   | $                                                              | -      |   |                                         | $      | 2,007 |   |   | $ | 2,007 |   |
| FNMA                    |   |                                                           | -      |   |                                         |   | 34,638 |   |   |   | 34,638 |   |
| GNMA                    |   |                                                           | -      |   |                                         |   | 105 |   |   |   | 105 |   |
| Government Agency Notes |   |                                                           | -      |   |                                         |   | 36,981 |   |   |   | 36,981 |   |
| Equity Securities       |   |                                                           |   |   |                                         |   |   |   |   |   |   |   |
| ARM Fund                |   |                                                           | 1,308  |   |                                         |   | - |   |   |   | 1,308 |   |
|                    |   |                                                           |   |   |                                         |   |   |   |   |   |   |   |
| Total                   |   | $                                                              | 1,308  |   |                                         | $      | 73,731 |   |   | $ | 75,039 |   |
|                    |   |                                                           |   |   |                                         |   |   |   |   |   |   |   |
|                    |   | Fair Value Measurements Using:                                 |   |   |                                         |   |   |
|                    |   |                                                           |   |   |                                         |   |   |   |   |
|                    |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Total |   |
| June 30, 2010           |   | (In Thousands)                                                 |   |
| Available-for-Sale      |   |                                                           |   |   |                                         |   |   |   |   |   |   |   |
| Debt Securities         |   |                                                           |   |   |                                         |   |   |   |   |   |   |   |
| FHLMC                   |   | $                                                              | -      |   |                                         | $      | 3,206 |   |   | $ | 3,206 |   |
| FNMA                    |   |                                                           | -      |   |                                         |   | 58,808 |   |   |   | 58,808 |   |
| GNMA                    |   |                                                           | -      |   |                                         |   | 115 |   |   |   | 115 |   |
| Equity Securities       |   |                                                           |   |   |                                         |   |   |   |   |   |   |   |
| ARM Fund                |   |                                                           | 1,559  |   |                                         |   | - |   |   |   | 1,559 |   |
|                    |   |                                                           |   |   |                                         |   |   |   |   |   |   |   |
| Total                   |   | $                                                              | 1,559  |   |                                         | $      | 62,129 |   |   | $ | 63,688 |   |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | The following table presents the components of average outstanding common shares for the years ended June 30, 2011 and 2010: |
|--------|------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | 2011   |        |    | 2010   |   |
|-----------------------------------------|--------|--------|-------------|---------|--------|--------|
|                                    |   |   |        |    |   |   |
| Average Common Shares Issued            |   | $      | 3,139,491   |    |   | $      | 3,558,958 |   |
| Average Treasury Shares Held            |   |   | (92,983     | )  |   |   | (205,381 | ) |
| Average Unearned ESOP Shares            |   |   | (141,146    | )       |   |   | (85,416 | ) |
| Average Unearned RRP Trust Shares  |   |   | (1,784      | )       |   |   | (16,586 | ) |
|                                    |   |   |        |    |   |   |   |   |
| Weighted Average Number of Common       |   |   |        |    |   |   |   |   |
|  Shares Used in Basic EPS          |   |   | 2,903,578   |    |   |   | 3,251,575 |   |
|                                    |   |   |        |    |   |   |   |   |
| Effect of Dilutive Securities           |   |   |        |    |   |   |   |   |
| Stock Options                      |   |   | 4,617  |    |   |   | - |   |
|                                    |   |   |        |    |   |   |   |   |
| Weighted Average Number of Common       |   |   |        |    |   |   |   |   |
| Shares and Dilutive Potential Common    |   |   |        |    |   |   |   |   |
| Shares Used in Dilutive EPS   |   | $      | 2,908,195   |    |   | $      | 3,251,575 |   |

| Note 21. | Subsequent Events |
|----------|-------------------|

|   | In accordance with FASB ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date that the financial statements were available to be issued, and has determined the following events require disclosure: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

|   | HOME FEDERAL BANCORP, INC. OF LOUISIANA |
|--------|-----------------------------------------|

|                                            |                                                                                                      | 2011                                                                                          |                                                                                                                                  |  2010                                                                                                                            |   |
|-------------------------------------------------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                            |                                                                                                      | (In Thousands)                                                                                |
| Assets                                          |                                                                                                      |                                                                                          |                                                                                                                                  |
|    Cash and Cash Equivalents     |  $              407            |                                                                                          |  $               888                                  |
|    Investment in Subsidiary      |             42,115                            |                                                                                          |              32,207                                                  |
|    Securities Available-for-Sale |               9,245                 |                                                                                          |                       - |
|    Other Assets                  |                  133 |                                                                                          |                   270                       |
|                                            |                                                                                                      |                                                                                          |                                                                                                                                  |                                                                                                                                  |
|                                            | Total Assets                                                                                              | $         51,900                                 |                                                                                                                                  | $           33,365                                                             |
|                                            |                                                                                                      |                                                                                          |                                                                                                                                  |                                                                                                                                  |
| Liabilities and Stockholders' Equity            |                                                                                                      |                                                                                          |                                                                                                                                  |
|                                            | Deferred Income Tax                                                                                       | $               13 |                                                                                                                                  | $                    -            |
|                                            | Other Liabilities                                                                                         |                704 |                                                                                                                                  |                       - |
|                                            | Stockholders' Equity                                                                                      |           51,183                            |                                                                                                                                  |              33,365                                                  |
|                                            |                                                                                                      |                                                                                          |                                                                                                                                  |                                                                                                                                  |
|                                            |    Total Liabilities and Stockholders' Equity                                              |  $       51,900                                       |                                                                                                                                  |  $          33,365                                                             |

|                                           |                                                                                                 | 2011                                                                                          |                                                                                                                       |       2010                                                                        |
|------------------------------------------------|------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
|                                           |                                                                                                 | (In Thousands)                                                                                |
| Equity in Undistributed Earnings of Subsidiary |  $         2,053                                   |                                                                                          |  $               825                       |
| Interest Income                                |                 103       |                                                                                          |                     50 |
|                                           |                                                                                                 |                                                                                          |                                                                                                                       |                                                                                                            |
|                                           | Total Income                                                                                         |             2,156                 |                                                                                                                       |                   875 |
|                                           |                                                                                                 |                                                                                          |                                                                                                                       |                                                                                                            |
| Operating Expenses                             |                277        |                                                                                          |                  285                  |
|                                           |                                                                                                 |                                                                                          |                                                                                                                       |                                                                                                            |
|                                           | Total Expenses                                                                                       |                277 |                                                                                                                       |                   285 |
|                                           |                                                                                                 |                                                                                          |                                                                                                                       |                                                                                                            |
| Income Before Income Tax Benefit               |             1,879                        |                                                                                          |                   590            |
| Income Tax Benefit                             |                 (59) |                                                                                          |                   (80)           |
|                                           |                                                                                                 |                                                                                          |                                                                                                                       |                                                                                                            |
|                                           | Net Income                                                                                           |  $         1,938                            |                                                                                                                       |  $               670            |

----

| HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY |
|--------------------------------------------------------|
|  Notes to Consolidated Financial Statements       |

| Note 22. | Parent Company Financial Statements (Continued) |
|----------|-------------------------------------------------|

| HOME FEDERAL BANCORP, INC. OF LOUISIANA      |                                                                                          |                                                                                                 |
|----------------------------------------------|-----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
| Condensed Statements of Cash Flows           |                                                                                          |                                                                                                 |
| For the Years Ended June 30, 2011 and 2010   |                                                                                          |                                                                                                 |
|                                         |                                                                                          |                                                                                                 |
|                                         |                                                                                          |                                                                                                 |   |   | 2011 |   |               2010 |
|                                         |                                                                                          |                                                                                                 |   |   | (In Thousands) |
| Operating Activities                         |                                                                                          |                                                                                                 |   |
|                                         | Net Income                                                                                    |  $         1,938                                   |   |  $             670 |
|                                         | Adjustments to Reconcile Net Income to Net                                                    |                                                                                                 |   |   |
|                                         |                                                                                          | Cash Provided by Operating Activities                                                                |   |   |   |
|                                         |                                                                                          |                                                                                                 | Net Amortization and Accretion on Securities |                  50 |   |                   - |
|                                         |                                                                                          |                                                                                                 | Equity in Undistributed Earnings of Subsidiary |            (2,053) |   |               (825) |
|                                         |                                                                                          |                                                                                                 | Decrease in Other Assets |                137 |   |                 192 |
|                                         |                                                                                          |                                                                                                 | Increase in Other Liabilities |                704 |   |                   - |
|                                         |                                                                                          |                                                                                                 |   | Net Cash Provided by Operating Activities |                776 |   |                  37 |
|                                         |                                                                                          |                                                                                                 |   |   |   |   |   |
| Investing Activities                         |                                                                                          |                                                                                                 |   |
|                                         |                                                                                          |                                                                                                 | Purchase of Available-for-Sale Securities |            (9,254) |   |   - |
|                                         |                                                                                          |                                                                                                 | Investment in Subsidiary |            (8,553) |   |   - |
|                                         |                                                                                          |                                                                                                 |   | Net Cash Used in Investing Activities |          (17,807) |   |                   - |
|                                         |                                                                                          |                                                                                                 |   |   |   |   |   |
| Financing Activities                         |                                                                                          |                                                                                                 |   |
|                                         | Net Proceeds from Stock Issuance                                                              |           18,040                                   |   |                   - |
|                                         | Acquisition of Stock for Benefit Plans                                                        |            (1,167)                            |   |                   - |
|                                         | Proceeds Received from Subsidiary on Stock Compensation                                       |                                                                                                 |   |   |
|                                         |                                                                                          | Programs                                                                                             |                234 |   |                 226 |
|                                         | Acquisition of Treasury Stock                                                                 |                 (46) |   |               (207) |
|                                         | Dividends Paid                                                                                |               (511)            |   |               (293) |
|                                         |                                                                                          |                                                                                                 |   | Net Cash Provided by (Used in) Financing Activities |           16,550 |   |               (274) |
|                                         |                                                                                          |                                                                                                 |   |   |   |   |   |
| Decrease in Cash and Cash Equivalents        |               (481)     |                                                                                                 |               (237) |
| Cash and Cash Equivalents, Beginning of Year |                888 |                                                                                                 |              1,125 |
|                                         |                                                                                          |                                                                                                 |   |   |   |   |   |
| Cash and Cash Equivalents, End of Year       |  $            407            |                                                                                                 |  $             888 |

----

| (a) | Our management evaluated, with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on such evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and regulations and are operating in an effective manner. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Management’s Report on Internal Control over Financial Reporting |
|-----|------------------------------------------------------------------------|

|   | Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements prepared for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under the supervision and with the participation of management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control — Integrated Framework, management concluded that our internal control over financial reporting was effective as of June 30, 2011. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | No change in the Company’s internal control over financial reporting (as defined in rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|       Plan Category                                                               |   | Number of Securities to beIssued Upon Exercise ofOutstanding Options,Warrantsand Rights(a) |            |   | Weighted-AverageExercise Price ofOutstandingOptions, WarrantsAnd Rights(b) |   |            | Number of SecuritiesRemaining Available forFuture Issuance Under EquityCompensation Plans(Excluding SecuritiesReflected in Column (a))(c) |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|-----------------|--------|----------------------------------------------------------------------------|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans     approved by security     holders     |   |                                                                                       |   158,868  |   |                                                                       | $      |  10.83     |                                                                                                                                      |   |   |   -- |   |
| Equity compensation plans     not approved by security     holders |   |                                                                                       |    -- |   |                                                                       |   |    -- |                                                                                                                                      |   |   |    -- |   |
|                                                                                                                 |   |                                                                                       |            |   |                                                                       |   |            |                                                                                                                                      |   |   |   |   |
|           Total                                                    |   |                                                                                       | 158,868         |   |                                                                       | $      | 10.83           |                                                                                                                                      |   |   | -- |   |

----

| No.  | Description                                                                                                  | Location  |
|-----------|-------------------------------------------------------------------------------------------------------------------|----------------|
| 3.1       | Articles of Incorporation of Home Federal Bancorp, Inc. of Louisiana                                              | (1)            |
| 3.2       | Bylaws of Home Federal Bancorp, Inc. of Louisiana                                                                 | (1)            |
| 4.0       | Form of Stock Certificate of Home Federal Bancorp, Inc. of Louisiana                                              | (1)            |
| 10.1      | Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan                                                    | (2)            |
| 10.2      | Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan                                       | (2)            |
| 10.3      | Employment Agreement between Home Federal Bank and Daniel R. Herndon                                              | (3)            |
| 10.4      | Employment Agreement between Home Federal Bancorp, Inc. of Louisiana and    Daniel R. Herndon | (3)            |
| 10.5      | Employment Agreement between Home Federal Bank and James R. Barlow                                                | (4)            |
| 10.6      | Loan Officer Incentive Plan                                                                                       | (1)            |
| 23.0      | Consent of LaPorte, Sehrt, Romig & Hand                                                                       | Filed Herewith |
| 31.1      | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer                                             | Filed Herewith |
| 31.2      | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer                                             | Filed Herewith |
| 32.0      | Section 1350 Certifications                                                                                       | Filed Herewith |

| (1) | Incorporated herein by reference from Home Federal Bancorp’s Registration Statement on Form S-1, as amended, filed with the SEC on September 3, 2010 (SEC File No. 333-169230). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated herein by reference from Home Federal Bancorp, Inc. of Louisiana’s Definitive Schedule 14A filed with the SEC on June 29, 2005 (SEC File No. 000-51117). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated herein by reference from Home Federal Bancorp, Inc. of Louisiana’s Current Report on Form 8-K filed with the SEC on February 23, 2009 (File No. 000-51117). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated herein by reference from Home Federal Bancorp, Inc. of Louisiana’s Current Report Form 8-K filed with the SEC on January 19, 2010 (File No. 000-51117). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           | HOME FEDERAL BANCORP, INC. OF LOUISIANA  |                                                   |
|--------------------------------|-----------------------------------------------|--------------------------------------------------------|
| Date: September 27, 2011  | By:                                 | /s/Daniel R. Herndon                                   |   |
|                           |                                          | Daniel R. Herndon                                 |   |
|                           |                                          | Chairman, President, and Chief Executive Officer  |   |

| Name                       |   | Title                                        |   | Date               |
|----------------------------|--------|----------------------------------------------|--------|--------------------|
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/Daniel R. Herndon       |   | Chairman of the Board, President and Chief   |   | September 27, 2011 |
| Daniel R. Herndon          |   | Executive Officer                            |   |               |
|                       |   | (Principal Executive Officer)                |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/James R. Barlow         |   | Director, Executive Vice President and Chief |   | September 27, 2011 |
| James R. Barlow            |   | Operating Officer                            |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/Clyde D. Patterson      |   | Director and Executive Vice President and    |   | September 27, 2011 |
| Clyde D. Patterson         |   | Chief Financial Officer                      |   |               |
|                       |   | (Principal Financial and Accounting Officer) |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/Walter T. Colquitt III  |   | Director                                     |   | September 27, 2011 |
| Walter T. Colquitt III     |   |                                         |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/David A. Herndon, III   |   | Director                                     |   | September 27, 2011 |
| David A. Herndon, III      |   |                                         |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/Scott D. Lawrence       |   | Director                                     |   | September 27, 2011 |
| Scott D. Lawrence          |   |                                         |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/Mark M. Harrison        |   | Director                                     |   | September 27, 2011 |
| Mark M. Harrison           |   |                                         |   |               |
|                       |   |                                         |   |               |
|                       |   | Director                                     |   | September _, 2011  |
| Woodus K. Humphrey         |   |                                         |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/Amos L. Wedgeworth, Jr. |   | Director                                     |   | September 27, 2011 |
| Amos L. Wedgeworth, Jr.    |   |                                         |   |               |
|                       |   |                                         |   |               |
|                       |   |                                         |   |               |
| /s/Timothy W. Wilhite      |   | Director                                     |   | September 27, 2011 |
| Timothy W. Wilhite, Esq    |   |                                         |   |               |